1. The company consulted a roofing coating contractor who presented the company with two options. The first option is a coating that will cost P20,000 which would extend the life of the roofing for 3 years from date of application, and the second option will cost P30,000 and which would extend the life of the roofing for 5 years from the date of application. At what rate of return are the two investments equal?

1. The company consulted a roofing coating contractor who presented the company with two options. The first option is a coating that will cost P20,000 which would extend the life of the roofing for 3 years from date of application, and the second option will cost P30,000 and which would extend the life of the roofing for 5 years from the date of application. At what rate of return are the two investments equal?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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