Comprehensive Problems
(Reported by Bautista, Ivern S.)
Batak Hospital, a non-profit institution not subject to income taxes, is considering the purchase
of new equipment costing P20,000 in order to achieve cash saving of P5,000 per year in
operating cost
Christine Joy R. Solinap
AC - 401
CAPITAL ASSET PRICING MODEL CAPM
The capital asset pricing model (CAPM) is a model that describes the relationship between
systematic risk and expected return for assets.
The formula for calculating the expected return of
G.R. No. L-33592
March 31, 1931
Estate
of
the
deceased
EUSEBIA LIM, petitioner-appellant, vs. JULIANA CHINCO, oppositor-appellee.
Victorina
Villaranda.
STREET, J.:
FACTS:
The late Victorina Villaranda y Daz, 80, was a resident of Meycauayan, Bulacan at th
Mary Joy V. Bernal
AC 401
Problem:
GD Corporation makes an investment of $25,000, which yields the following cash flows:
$5,000
5,000
8,000
9,000
10,000
Year
Cash Flow
Required:
a. What is the present value with a 9 percent discount rate (cost of capital)
Dela Cruz, Eunice Albert T.
AC401
You are analyzing a capital budgeting project. Someone spilled coffee on the page and, as shown by
the ?, several numbers are unreadable. You can read the following information:
Cash Flows at the end of:
Year 0 ($24,300)