A company is planning to expand its present business activity

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A company is planning to expand its present business activity. It has two alternatives for the expansion programme and the corresponding cash flows are tabulated below. Each alternative has a life of five years and a negligible salvage value. The minimum attractive rate of return for the company is 12%. Suggest the best alternative to the company. Alternative Initial Investment Yearly Revenue (Php) (Php) 1 500,000 170,000 N 800,000 270,000