. 1: An investment of P 250,000 can be made in a project that will produce a uniform annual revenue of P 192,800 for 5 years and then have a salvage value of 10% of the first cost. Operation and maintenance will be P 72,000 per year. Taxes and insurance will be 4% of the, first cost per year. The company expects capital to earn 20% before income taxes. 1. PW method 2. FW method 3. AW method

. 1: An investment of P 250,000 can be made in a project that will produce a uniform annual revenue of P 192,800 for 5 years and then have a salvage value of 10% of the first cost. Operation and maintenance will be P 72,000 per year. Taxes and insurance will be 4% of the, first cost per year. The company expects capital to earn 20% before income taxes. 1. PW method 2. FW method 3. AW method

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Attempt all three parts otherwise wil definitely give multiple dislikes

(Thanks)

» 1: An investment of P 250,000 can be made in a project that will produce a
uniform annual revenue of P 192,800 for 5 years and then have a salvage value of 10% of
the first cost. Operation and maintenance will be P 72,000 per year. Taxes and insurance
will be 4% of the first cost per year. The company expects capital to earn 20% before
income taxes.
1. PW method
2. FW method
3. AW method

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