Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:Garbage collection in the city are collected by garbage trucks which are operated by
private contractor to ensure effective service to the public. One garbage truck will cost
P3M with an annual maintenance cost of P50,000. The life of the truck is 5 years with
a salvage value of P180,000. The contractor can hire a similar truck for P3400 a day. If
money is worth 10% annually, how many days per year must the truck be used to
warrant the purchase of the machine assuming it is used everyday for the whole year?
Select the correct response:
158
221
239
200
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