A parcel of land can be leased for a period of 10 years. Initial development costs for clearing, paving and constructing a small office shed on the lot is estimated to be P250, 000. If the net annual revenue for the first year is P22, 000 and increases by 5% per year thereafter until the tenth year. What is the equivalent uniform net annual revenue for ten years if interest per year is 8%?

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
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A parcel of land can be leased for a period of 10 years. Initial development costs for clearing, paving and constructing a small office shed on the lot is estimated to be P250, 000. If the net annual revenue for the first year is P22, 000 and increases by 5% per year thereafter until the tenth year. What is the equivalent uniform net annual revenue for ten years if interest per year is 8%?

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