HILBERT D MADEN BSBA-OM301BMANAGERIAL ACCOUNTING TASK PERFORMANCETASK PERFORMANCEInstructions:Read and analyze the situations given below. Answer the following questions on aseparate sheet of paper. Show your computations.(20 items x 5 points)Phantom Troupe, Inc. plans to put up a small game lounge. The overall cost of the project isP175,000 which is expected to exist in seven (7) years.PeriodsPresent valuefactors12%14%16%18%20%22%24%74.5644.2884.0393.8123.6053.4163.242Case A: Annual cash inflows for seven (7) years is P50,000 (WACC is 12%)1.What is the payback period?
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2.If the management accepts projects with payback period of four (4) years, will thegame lounge be accepted? Why or why not?
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