Answered: A company borrows Php 200,000 for six…

A company borrows Php 200,000 for six years at 8%. At the end of six years, the company renew the loan for the amount due plus Php 200,000 more for two years at 8%. What is the total amount due

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Cash Flow in Engineering Economics (Interest and Equivalence)

The cash flows of a firm are of two categories such as cash inflows and cash outflows. Cash inflow is the money or income entering a firm during a specific period whereas cash outflow is the money exiting a firm during a specific period in the form of the expenses incurred by the firm. In other words, we can say that cash flow is a series of expenses and credits that run over the project over the lifetime it existed whereas cash inflows are all the income and gains the company earns as a result of its operations.

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A company borrows Php 200,000 for six years at 8%. At the end of six years, the company renew the loan for the amount due plus Php 200,000 more for two years at 8%. What is the total amount due?

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