A manufacturing plant is to purchase a new equipment worth P50,000. Revenues for the first three years is P20,000, while expenses for the same years will be P5,000. A year later, revenues surpassed expenses by P15,000 and will last for three years. Determine the ERR of the project is MARR is 18% and ε = 15%.

A manufacturing plant is to purchase a new equipment worth P50,000. Revenues for the first three years is P20,000, while expenses for the same years will be P5,000. A year later, revenues surpassed expenses by P15,000 and will last for three years. Determine the ERR of the project is MARR is 18% and ε = 15%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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