uppose Business Finance, Itd. has an opportunity to acquire a new asset for P 21,689,349 today that will increase the company’s cash inflow by P 5,795,703 every year up to the end of its useful life. The new asset has 6 years of estimated useful life. Determine the net present value of taking the investment if the effective interest.
ABM, Inc. acquired a production equipment amounting to P 23,870,871. The company expected that because of the asset, the operating expense will be cut by P 5,241,267 every year up to the end of its useful life. The new asset has 6 years of estimated useful life. The company also accounted that the acquired asset has 1,466,765 salvage value. Determine the net present value of acquiring the new asset if the effective interest
