A farmer hires 5 men to clear his ranch from grasses and bushes for 5 days. He pays PHP 350.00 for each of them per day. He projects that in the succeeding years, his expense will decrease by 10% every year. What will be the present value of these payments for the first 10 years. If I = 15%? Provide the Cashflow diagrams.
A farmer hires 5 men to clear his ranch from grasses and bushes for 5 days. He pays PHP 350.00 for each of them per day. He projects that in the succeeding years, his expense will decrease by 10% every year. What will be the present value of these payments for the first 10 years. If I = 15%? Provide the Cashflow diagrams.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A farmer hires 5 men to clear his ranch from
grasses and bushes for 5 days. He pays PHP
350.00 for each of them per day. He projects that
in the succeeding years, his expense will decrease
by 10% every year. What will be the present value
of these payments for the first 10 years. If I = 15%?
Provide the Cashflow diagrams.
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