NATIONAL FEDERATION OF JUNIOR PHILIPINNE INSTITUTE OF ACCOUNTANTS –

NATIONAL CAPITAL REGION

MANAGEMENT ADVISORY SERVICES

1. The contribution margin ratio always decreases when the

C a. Breakeven point increases
b. Breakeven point decreases
c. Variable costs as a percentage of net sales increase
d. Variable costs as a percentage of net sales decrease

2. EU Corporation has preferred stock with a market value of P 107 per

share, a face value of P 100 per share, underwriting costs of P 5 per
share, and annual dividends of P 10. EU’s tax rate is 30%.

What is EU’s approximate cost of capital for preferred stock?

C a. 6.9%
b. 9.3%
c. 9.8%
d. 10.5%

3. If a company tends to be more conservative with respect to its working capital policy, then it would
tend to have a(n)
C a. Increase in the normal operating cycle
b. Decrease in the normal operating cycle
c. Increase in the ratio of current assets to current
liabilities
d. Decrease in the ratio of current assets to current
liabilities

4. UN Company uses a predetermined factory overhead application rate

based on direct labor cost. UN’s budgeted factory overhead was P
300,000, based on a budgeted volume of 25,000 direct labor hours, at
a standard direct labor rate of P 6.00 per hour. Actual factory
overhead amounted to P 310,000, with actual direct labor cost of P
162,500. Factory overhead was:
B a. P 12,500 over-applied
b. P 15,000 over-applied
c. P 12,500 under-applied
d. P 15,000 under-applied

5. Two goods, A1 and B2, are substitutes. What will an increase in the price of B2 cause?
A a. The demand curve for A1 to shift right
b. The supply curve for A1 to shift right
c. The demand curve for A1 to shift left
d. The supply curve for A1 to shift left

6. Which of the following is generally categorized as a value-added activity?

D a. Rework
b. Material moves
c. Filing tax returns
d. Operating production equipment
7. The residual income of a company segment is positive when
C a. Sales variances are favorable
b. Costs variances are unfavorable
c. Minimum RoI is lower than the segment’s RoI
d. Minimum RoI is based on company’s cost of capital

Items 8 and 9 are based on the following information

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Inventory balances and manufacturing cost data for the month of
January for Barcelona Company. Under Barcelona’s cost system, any
over-applied or under-applied overhead is closed to the cost of goods
sold account at the end of the calendar year.
Inventories: Beginning Ending
Direct materials P 15,000 P 20,000
Work-in-process 7,500 10,000
Finished goods 32,500 25,000
Month of January
Cost of goods manufactured P 257,500
Factory overhead applied 75,000
Direct materials used 95,000
Actual factory overhead 72,000

8. What was the amount of direct material purchases during January?

D a. P 90,000
b. P 95,000
c. P 97,500
d. P 100,000

9. How much direct labor cost was incurred during January?

C a. P 85,000
b. P 87,500
c. P 90,000
d. P 93,000

10. For working capital management purposes, the difference between the cash balance per company
books and the cash balance per bank statement is called ______
A a. Float
b. Lockbox system
c. Bank reconciliation
d. Compensating balance

11. The following information regarding a capital project was given for consideration:
Estimated life 10 years
Cost of capital 20%
Initial investment P 6,500
Cash inflows per year P 1,000
Straight-line depreciation P 325

What is the unadjusted accounting rate of return (ARR) of the capital

project?
B a. 15.38%
b. 20.77%
c. 30.77%
d. Cannot be determined from the given information

12. When would a retailer tend to decrease the safety stock of inventory?
D a. Sales variability increases
b. Transportation time increases
c. Sales volume permanently increases
d. Cost of carrying inventory increases
13. Which of the following is NOT a component used in calculating the cost of capital?
C a. The cost of common stock
b. The cost of long-term debt
c. The cost of short-term debt
d. The cost of retained earnings

14. In an income statement prepared as an internal report using the variable costing method, variable
selling expenses would
B a. Be considered in computing gross profit and operating income
b. Be considered in computing operating income and contribution
margin
c. Be considered in computing operating income but not considered
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in computing contribution margin
d. Be considered in computing contribution margin but not
considered in computing gross profit and operating income

15. Milan Company has average daily cash collections of P 3 million,

based on a 360-day year. A new system is estimated to reduce the
average collection period by two days without affecting sales. The
new system’s annual cost is P 100,000 plus 0.01% of collections.
Milan estimates that it would earn 6% on additional funds.

What is the estimated annual net benefit from the new system?
A a. P 152,000
b. P 180,000
c. P 260,000
d. P 360,000

16. Lourdes Company’s present current ratio is 4 times. What transaction will most likely cause the
current ratio of the company to increase?
C a. Purchase of inventory on credit
b. Collection of trade receivables
c. Payment of current tax obligations
d. Borrowing of cash based a 12-month loan

Items 17 and 18 are based on the following information

The manufacturing capacity of Tour Company’s facilities is 30,000 units of product a year. A
summary of operating results for calendar Year 1 is as follows:
Sales (P 50 per unit) P 900,000
Variable manufacturing and selling costs (495,000)
Contribution margin 405,000
Fixed costs (247,500)
Operating income P 157,500

17. What is Tour’s margin of safety in year 1?

C a. 11,000 units
b. 9,000 units
c. 7,000 units
d. 5,000 units

18. Assume a tax rate of 25%, how many more units shall be sold in year 2 to earn an after-tax profit of
P 236,250?
C a. 25,000 units
b. 21,500 units
c. 7,000 units
d. 3,500 units

19. If a company’s cash conversion cycle increases, then the company

C a. Becomes more profitable
b. Incurs more shortage or stockout costs
c. Increases its investment in working capital
d. Reduces its payable deferral period (age of payable)

20. Monaco Company manufactures products N-Lex and S-Lex from a joint
process. Product N-Lex has been allocated P 5,000 of total joint
costs of P 40,000 for the 1,000 units produced. N-Lex can be sold at
the split-off point for P 6 per unit, or it can be processed further
with additional costs of P 2,000 and sold for P 10 per unit.

If N-Lex is processed further and sold, the result would be an:

C a. Over-all loss of P 2,000
b. Over-all loss of P 3,000
c. Additional gain of P 2,000 from further processing
d. Additional gain of P 4,000 from further processing

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21. When a flexible budget is used, an increase in production levels within the relevant range would
D a. Change total fixed costs
b. Not change total variable costs
c. Not change fixed costs per unit
d. Not change variable costs per unit

22. Monte Carlo Company is considering a change in collection procedures

that would result in an increase of the average collection period
from 28 to 36 days. Monte Carlo anticipates that next year’s sales
to be P 9 million and that 80% of the sales will be on credit. Monte
Carlo estimates short-term interest rates at 6% and uses a 360-day
year for decision making.

What minimum savings in collection costs would the procedure change have to generate to offset the
increased investment in accounts receivable?
B a. P 1,200
b. P 9,600
c. P 12,000
d. P 33,600

23. Spain Company plans to replace an old machine with a new one. For capital budgeting purposes,
which of the following shall be considered in the calculation of initial cost of net investment?
B a. Cost of the old machine and salvage value of the new machine
b. Cost of the new machine and salvage value of the old machine
c. Cost and salvage value of the old machine
d. Cost and salvage value of the new machine

24. Sagrada Company must maintain a compensating balance of P 50,000 in

its checking account as one of the conditions of its short-term 6%
bank loan of P 500,000. Sagrada’s checking account earns 2%
interest. Ordinarily, Sagrada would maintain a P 20,000 balance in
the account for transaction purposes.

What is the loan’s approximate effective interest rate?

C a. 5.88%
b. 6.17%
c. 6.25%
d. 6.38%

25. What is characteristic of a period of rising inflation?

B a. Increases the purchasing power of money
b. Increases the price level and decreases the purchasing power
of money
c. Increases the price level, which benefits anyone who is owed a
specific amount of money
d. Benefits anyone who is owed a specific amount of money and
harms anyone who owes specific amount

26. Italy provides the following information for its standard material
cost for one unit of its finished product:

STANDARD: 4 meters @ P 2.00 per meter = P 8 per unit

Actual data also showed the following data:

Materials, January 1 10,000 meters
Materials, December 31 15,000 meters
Materials purchases for the year 220,000 meters
Average purchase price for the year P 2.50

How many finished units were produced if materials quantity variance is computed as P 30,000
unfavorable?
A a. 50,000 units
b. 50,750 units

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c. 51,250 units
d. 52,000 units

27. Why is equity capital generally more expensive than debt financing?
C a. Interest on bonds is a legal obligation
b. Dividends fluctuate more than interest rates
c. Investors expect to be paid more due to exposure to higher
risk
d. Investors have a greater demand for equity investments than
for debt investments

Items 28 and 29 are based on the following information

France Company provides the following information based on its accounting records:
Current assets P 2,000,000
Noncurrent assets 7,000,000
Current liabilities 1,000,000
Noncurrent liabilities 4,000,000
Pretax operating profit 1,500,000
Pretax cost of equity 15%
Pretax cost of debt 5%
Tax rate 40%

The carrying amounts and market values of above amounts do not differ
significantly.

28. What is France Company’s weighted average cost of capital (WACC)?

B a. 6%
b. 9%
c. 10%
d. Cannot be determined from the given information

29. What is France Company’s economic value added (EVA)?

A a. P 180,000
b. P 120,000
c. P 90,000
d. P 0

30. Nice Company’s average cost is decreasing over a range of increased output. What is Nice
experiencing?
A a. Economies of scale
b. Diminishing returns
c. Technological efficiency
d. Decreasing fixed charges

31. Which of the following is LEAST likely a part of inventory costs under variable
costing?
C a. Supplies used in factory operations
b. Output-based salary of plant workers
c. Annual rental of manufacturing facilities
d. Cost of blueberries used in the producing berry juices

32. Paris Company produces and sells three (3) products with the following data:
Product F1 Product F2 Product F3
Sales P 30,000 P 60,000 P 10,000
Variable costs 24,000 40,000 5,000

Assuming that the total fixed costs are P 18,600 and the sales mix is proportional to peso sales, how
much should be the sale of product F1 to break-even?
B a. P 6,000
b. P 18,000
c. P 36,000
d. P 60,000

33. Which of the following is generally considered as a cash outflow and classified as a financing activity?
D a. Payment of interests on indebtedness
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b. Settlement of current tax liabilities
c. Issuance of company bonds at a discount
d. Acquisition of company’s own shares at treasury

34. UK Company wants to determine the optimum safety stock level for drug
Metro-2. The annual carrying cost of Metro-2 is 25% of the inventory
investment. The inventory investment averages P 10 per unit. The
stock out cost is estimated at P 2 per unit. UK orders Metro-2 20
times annually. UK defines the total costs of safety stock as
carrying costs plus expected stock out costs. With 100 units of
safety stock, there is a 15% probability of a 30-unit stock out per
order cycle.

What is the total annual cost of the 100 units of Metro-2 safety stock?
D a. P 250
b. P 259
c. P 277
d. P 430

35. A CPA firm’s primary purpose for performing Management Advisory Services (MAS) is to
B a. Prepare the CPA firm for the changing needs and requirements
of business community
b. Provide advice and technical assistance which will enable a
client to conduct its business more effectively
c. Establish the CPA firm as a consultant, which enable the CPA
firm to ensure future viability and growth
d. Enable staff members of the CPA firm to acquire the necessary
continuing education in all areas of business

36. The following operating data refer to London Company’s 6-day workweek:
Sum of the hours 174
Sum of the costs 225
Sum of the hours x costs 3,414
Sum of the squared value of costs 4,259
Which equation shall be used under the least-squares method?
D a. 3,414 = 225 a + 4,259 b
b. 3,414 = 174 a + 4,259 b
c. 225 = 174 a + 3,414 b
d. 225 = 6 a + 174 b

37. All of the following are factors considered in credit policy administration, EXCEPT:
D a. Terms of trade
b. Credit standards
c. Collection policy
d. Amount of receivable

38. Bath Company expects next year’s net income to be P 2 million.

Bath’s current capital structure is 30% debt, 30% preferred equity,
and 40% common equity. Next year, Bath plans to issue debt and common
stock as needed to maintain 30:40 ratio, not issue more preferred
stock. Interest payments on Bath’s 10,000 4%, P 1,000 par value
bonds are current. Bath can issue up to P 1 million more 4% bonds
at face value. Bath’s marginal tax rate is 30%. There are no
dividends in arrears on Bath’s 10,000 shares 6%, P 1,000 par value
cumulative preferred stock. Optimal capital spending for next year
is estimated at P 1.4 million.

Using a strict residual dividend policy, what is the approximate

estimated common stock dividend payout ratio for the next year?
B a. 16%
b. 30%
c. 35%
d. 70%

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39. A primary objective in measuring productivity is to improve
operations either by using fewer inputs to produce the same output,
or to produce:
D a. More effectively
b. With fewer constraints
c. More outputs with more inputs
d. More outputs with the same inputs

40. Eiffel Company is preparing its cash budget for November. Eiffel expects 50% of credit sales to be
paid in the month of sale. 30% in the month following the sale, and the remainder paid two months
after the month of sale. Eiffel expects the cash and credit sales to be:
Cash Credit
November P 17,000 P 100,000
October ??? P 90,000
September P 15,000 P 80,000
August P 18,000 P 95,000

Assuming no bad debts and a projected total cash inflow of P 107,000 in October, what is Eiffel’s
expected October cash sales?
B a. P 20,000
b. P 19,000
c. P 16,000
d. P 14,000
41. A branch reported return on sales of 15% and return on investment of 24%. What was the
investment turnover of the branch?
C a. 0.39
b. 0.625
c. 1.6
d. 3.6

42. Which of the following non-value-added costs associated with manufactured work in process
inventory is most significant?
B a. The cost of labor that cannot be traced to any individual
product
b. The cost of moving, handling, and storing any individual
product
c. The cost of materials that cannot be traced to any individual
product
d. The cost of additional resources consumed to produce any
individual product

Items 43 and 44 are based on the following information

Big Ben buys tennis balls at P 25 per dozen from its wholesaler.
Big Ben will sell 35,000 dozens of tennis balls evenly throughout the
year. Big Ben desires a 12% percent return on investment (cost of
capital) on its inventory investment. In addition, rent, insurance
and related taxes for each dozen tennis balls in inventory amounts to
P 0.50. The cost per order is P 8. Big Ben uses a 350-day year.

43. What is the average number of tennis balls does Big Ben maintain?
C a. 200 tennis balls
b. 400 tennis balls
c. 2,400 tennis balls
d. 4,800 tennis balls

44. How often shall Big Ben place the orders within a year?
A a. Every 4 days
b. Every 5 days
c. Every 6 days
d. Every week

45. An income statement is typically included in the management performance report of

C a. Cost center and profit center
b. Revenue center and profit center
c. Profit center and investment center

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d. Revenue center, profit center and investment center

46. Ayala Avenue invested in a four-year project. Ayala’s cost of capital is 8 percent. Additional
information on the project is as follows:
Year Post-tax cash inflow PV of P 1 at 8%
1 P 2,000 0.926
2 2,200 0.857
3 2,400 0.794
4 2,600 0.735

Assuming a net present value of P 2,500, what is the project’s payback period?
A a. Between 2 years and 2.5 years
b. Between 2.5 years and 3 years
c. Between 3 years and 3.5 years
d. Between 3.5 years and 4 years

47. A market shortage usually occurs when a government sets a

B a. Price ceiling above equilibrium price
b. Price ceiling below equilibrium price
c. Price floor above equilibrium price
d. Price floor below equilibrium price

48. England Company is concerned about the company’s account receivable turnover ratio. The
company currently offers customers terms of 3/10, net 30. Which of the following strategies would
most likely improve the company’s accounts receivable turnover ratio?
D a. Changing customer terms to 1/10, net 30
b. Changing customer terms to 3/20, net 30
c. Pledging the accounts receivable to a finance company
d. Entering into a factoring agreement with a finance company

49. For quality costs purposes, sales returns and allowances due to a
quality deficiency shall be classified as a (an):
C a. Appraisal costs
b. Prevention costs
c. External failure costs
d. Internal failure costs

50. The first order of 500 units incurred P 120,000 of labor costs; the next order of 500 units required an
additional P 72,000 of labor costs. What percentage of learning occurred?
A a. 80%
b. 85%
c. 90%
d. 95%

51. The internal rate of return (IRR) of a capital investment project is the discount rate at which the
D a. Present value of cash outflows shall be maximum
b. Present value of cash inflows shall be minimum
c. Cost of capital shall be zero
d. Profitability index is 1.0

52. UAE Company produces two automotive parts, carburetors and air filters. Both products are made in
the same manufacturing facilities but are produced under different processes. To accomplish an
accurate allocation of production costs, the company uses activity-based costing. The cost
accountant for the company provided information about the activities used to produce the company’s
products. The activities were organized into the following overhead cost categories. The most
appropriate cost driver for each category is also provided.
Category Estimated Cost Cost Driver Carburetors Air Filters
Unit-level P 60,000 Labor hours 900 700
Batch-level P 22,000 Set-ups 20 30
Product-level P 45,000 Storage space 2,000 sq.m. 4,000 sq.m.
Facility-level P 100,000 Machine hours 7,500 12,500

If carburetors and air filters require the same amount of direct labor, what will be effect if labor
hours are used as the allocation base for product-level costs?
B a. Air filters will be over costed
b. Carburetors will be over costed

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c. Air filters and carburetors will be over costed
d. Air filters and carburetors will be under costed

53. A staff authority (rather than line authority) prevails between

C a. VP for Finance and treasurer
b. Controller and accounting clerk
c. VP for Production and controller
d. Controller and assistant controller

54. The normal operating cycle is 150 days while payable turnover is 6 times. How many cash
conversion cycles are there within a 300-day year?
A a. 3 cycles
b. 4 cycles
c. 5 cycles
d. 6 cycles

Items 55 and 56 are based on the following information

Domo Company has 15,000 hours of idle capacity. They need 20,000
units of a component part used in its product lines. It is estimated
that each unit will take one-half machine hour for production. The
following information is available:
Cost to make the parts:
Materials P 14
Direct labor 18
Factory overhead (75% of direct labor)
Variable factory overhead (40% of factory overhead)
Cost of buy the parts per unit from the supplier P 45

If Domo Company buys that parts rather than producing them, it will
save 60% of fixed overhead cost per unit.
55. How much is the total relevant unit cost to make?
C a. P 37.40
b. P 40.10
c. P 42.26
d. P 45.50
56. What is the over-all effect on company profit if Domo decides to buy from the supplier?
C a. P 152,000 worse off
b. P 98,000 worse off
c. P 54,800 worse off
d. P 10,000 better off

57. Westminster makes two products, X and Y. Their contribution margins are P 50 and P 90,
respectively. Each product goes through three processes: cutting, finishing, and painting. The
number of hours required by each process for each product and capacities available are given below:
Hours Required in Each Process
Product Cutting Painting Finishing
X 2 4 3
Y 1 6 2
Capacities in hours 300 500 250

Which of the following shall not be used in a Linear Programming

model for Westminster?
C a. Z = 50 X + 90 Y
b. X,Y ≥ 0
c. 300 ≤ 2 X + 1 Y
d. 250 ≥ 3 X + 2 Y

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58. Dubai Company has two decentralized divisions, PG-13 and R-18.
Division PG-13 has always purchased certain units from Division R-18
at P 75 per unit. Because Division R-18 plans to raise the price to
P 100 per unit, Division PG-13 desires to purchase these units from outside suppliers for P 75 per
unit. Division R-18’s costs follow:
Division R-18’s variable cost per unit P 70
Division R-18’s annual fixed costs P 15,000
Division PG-13’s purchase 1,000 units

If Division PG-13 buys from an outside supplier, the facilities

Division R-18 uses to manufacture these units will remain idle.

Would it be more profitable for Dubai Company to enforce the P 100 transfer price?
A a. Yes, net advantage of the company is P 5,000
b. Yes, net advantage of the company is P 30,000
c. No, net disadvantage of the company is P 25,000
d. No, net disadvantage of the company is P 30,000

59. Kaplan and Norton’s Balanced Scorecard model requires that management performance be
measured based on the perspective of
D a. Suppliers
b. Creditors
c. Government
d. Shareholders

60. Desert Company reports the following balance sheet data:

Current liabilities P 280,000
Bonds payable, 16% 120,000
Preferred stock, 14%, P 100 par value 200,000
Common stock, P 25 par value, 16,800 shares 420,000
Premium on common stock 240,000
Retained earnings 180,000

Income before 40%-tax is P 160,000 while the common stockholders’

equity in the previous year was P 800,000.

Assume a market price per common share of P 35, what is the return on common equity?
B a. 8.10%
b. 8.29%
c. 11.43%
d. 11.71%

61. Immaterial amount of unfavorable standard cost variance is normally

A a. Added to the Cost of Goods Sold account
b. Deducted from the Cost of Goods Sold account
c. Added to the Finished Goods Inventory account
d. Deducted from the Finished Goods Inventory account

62. Burj Company has the following information:

Break-even sales P 528,000
Variable cost ratio 60%

At a net profit ratio of 8%, what is Burj’s degree of operating leverage?

A a. 5 times
b. 4 times
c. 3 times
d. 2 times

63. Which of the following financial statement analysis tool generally is MOST USEFUL in analyzing
companies of different sizes?
D a. Comparative statements
b. Index or trend analysis
c. Liquidity and turnover ratios
d. Common-size financial statements
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64. Safari Corporation carries no debt in its capital structure. Its

beta is 0.8. The risk-free rate is 9 percent and the expected return
on the market is 15 percent. The company has an opportunity to invest
in a project that earns 12%.

Using Capital Assets Pricing Model (CAPM), what is Safari’s cost of

capital?
D a. 4.8%
b. 9%
c. 12%
d. 13.8%

65. A project’s net present value, ignoring income tax considerations, is normally affected by the
A a. Proceeds from the sale of the asset to be replaced
b. Amount of annual depreciation on the asset to be replaced
c. Carrying amount of the assets to be replaced by the project
d. Amount of annual depreciation on fixed assets used directly on
the project

66. At the start of the year, Bicester Company initiated a quality improvement program. The program
was successful in reducing scrap and rework costs. To help assess the impact of the quality
improvement program, the following data were collected for the current year:
Sales P 100,000
Scrap 20,000
Rework 25,000
Quality training 10,000
Product warranty 30,000
Product inspection 40,000
Materials inspection 20,000

In a quality cost report prepared by Bicester Company, what total amount should be shown as non-
conformance costs?
C a. P 45,000
b. P 70,000
c. P 75,000
d. P 115,000

67. When a specified level of safety stock is carried for an item in inventory, the average inventory level
for that item
D a. Is 50% of the level of the safety stock
b. Decreases by the amount of the safety stock
c. Increases by 50% of the amount of safety stock
d. Increases by the number of units of the safety stock

68. Dividend yield is 12% while price-earnings ratio is set 5 times. Determine the retention or plowback
ratio.
B a. 2.4%
b. 40.0%
c. 41.7%
d. 60%

Items 69 and 70 are based on the following information

The present value of P 1 discounted at 2%:

Year Simple Factor Annuity Factor
1 0.980 0.980
2 0.961 1.942
3 0.942 2.884
4 0.923 3.808
5 0.905 4.713
6 0.888 5.601
7 0.871 6.472
8 0.853 7.325

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9 0.837 8.162
10 0.820 8.983
11 0.804 9.787
12 0.788 10.575
13 0.773 11.348
14 0.758 12.106
15 0.743 12.849
16 0.729 13.578
17 0.714 14.292
18 0.700 14.992
19 0.686 15.678
20 0.673 16.351
21 0.660 17.011
22 0.647 17.658
23 0.631 18.292
24 0.622 18.914
25 0.610 19.523

A capital project’s expected gross income and after-tax cash flows for
the next 25 years are as follows:
Year Gross Revenue Cash Inflows Investment
0 - - (P 1,000,000)
1 P 250,000 P 10,000 (P 200,000)
2 P 250,000 P 10,000 -
3 P 250,000 P 10,000 -
4 P 250,000 P 10,000 -
5 P 250,000 P 10,000 -
6 P 250,000 P 10,000 -
7 P 250,000 P 10,000 -
8 P 250,000 P 10,000 -
9 P 250,000 P 10,000 -
10 P 250,000 P 10,000 -
11 P 300,000 P 10,000 -
12 P 300,000 P 10,000 -
13 P 300,000 P 10,000 -
14 P 300,000 P 10,000 -
15 P 300,000 P 10,000 -
16 P 400,000 P 20,000 -
17 P 400,000 P 20,000 -
18 P 400,000 P 20,000 -
19 P 400,000 P 20,000 -
20 P 400,000 P 20,000 -
21 P 500,000 P 20,000 -
22 P 500,000 P 20,000 -
23 P 500,000 P 20,000 -
24 P 500,000 P 20,000 -
25 P 500,000 P 20,000 -

69. The cash flow margin in year 21 is higher (lower) than the cash flow margin in year 20 by
C a. 1%
b. 3%
c. (1%)
d. (3%)
70. Assuming a 2% cost of capital, what is the net present value of the project?
C a. P 265,570
b. (P 734,430)
c. (P 934,030)
d. (P 1,213,440)

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