A machine cost ₱100,000 with salvage value of ₱10,000 after 10 years. If the annual maintenance and operation amounts to ₱10,000, annual tax and insurance amounts to ₱2,000. If the machine will deliver an annual revenue of ₱30,000, is it profitable? Take i=15%.

A machine cost ₱100,000 with salvage value of ₱10,000 after 10 years. If the annual maintenance and operation amounts to ₱10,000, annual tax and insurance amounts to ₱2,000. If the machine will deliver an annual revenue of ₱30,000, is it profitable? Take i=15%.

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

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Question

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A machine cost ₱100,000 with salvage value of ₱10,000 after 10 years. If
the annual maintenance and operation amounts to ₱10,000, annual tax and insurance
amounts to ₱2,000. If the machine will deliver an annual revenue of ₱30,000, is it
profitable? Take i=15%.

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