A construction contractor opted to purchase a dump truck for transportation and dumping of soil at a construction site. The cashflow details are provided as follows:Initial purchase priceisPhp 2,500,000. Annual Operating costisPhp 450,000 at the end of year 1 and increasing by Php 3,000 in the subsequent years until the end of useful life. Annual income is Php 120,000 with salvage value of Php 550,000 at the end of 10years.Illustrate the detailed cashflow and compute for the present worth of all costs.
A construction contractor opted to purchase a dump truck for transportation and dumping of soil at a construction site. The cashflow details are provided as follows:Initial purchase priceisPhp 2,500,000. Annual Operating costisPhp 450,000 at the end of year 1 and increasing by Php 3,000 in the subsequent years until the end of useful life. Annual income is Php 120,000 with salvage value of Php 550,000 at the end of 10years.Illustrate the detailed cashflow and compute for the present worth of all costs.
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
A construction contractor opted to purchase a dump truck for transportation and dumping of soil at a construction site. The cashflow details are provided as follows:Initial purchase priceisPhp 2,500,000. Annual Operating costisPhp 450,000 at the end of year 1 and increasing by Php 3,000 in the subsequent years until the end of useful life. Annual income is Php 120,000 with salvage value of Php 550,000 at the end of 10years.Illustrate the detailed cashflow and compute for the present worth of all costs.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education