A young engineer is considering establishing his own small company. An investment of P400,000 will be required which will be recovered in 15 years. It is estimated that sales will be P800,000 per year and that operating expenses will be as follows. 1. Materials Labor Overhead Selling expense P160,000 per year P280,000 per year P40,000 + 10% of sales per year P60,000 The man will give u his regular job paying P216,000 per year and devote full time to the operation of the business; this will result in decreasing labor cost by P40,000 per year, material cost by P28,000 per year and overhead cost by P32,000 per year. If the man expects to earn at least 20% of his capital, should he invest?

A young engineer is considering establishing his own small company. An investment of P400,000 will be required which will be recovered in 15 years. It is estimated that sales will be P800,000 per year and that operating expenses will be as follows. 1. Materials Labor Overhead Selling expense P160,000 per year P280,000 per year P40,000 + 10% of sales per year P60,000 The man will give u his regular job paying P216,000 per year and devote full time to the operation of the business; this will result in decreasing labor cost by P40,000 per year, material cost by P28,000 per year and overhead cost by P32,000 per year. If the man expects to earn at least 20% of his capital, should he invest?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

What happens if you don't manage debt properly? You sleep very well at night. You have a perfect credit rating. You end up in a financial mess. Your car gains value when you drive it off the dealer lot.
Choose one of financial instruments which you think comply “100%” with Islamic values. Explain.
Commercial banks and credit unions can create money and credit. True or False
How did the information revolution affect modern society?
Most credit cards operate on revolving credit. True or false? Explain how?
If not for a great deal of corporate wrongdoing, there would probably be no FCPA. True or False?
what are the steps in money laundering process
Are Diamonds Forever? How much would you spend on a diamond engagement ring? If you answered around the national average of $4,000 then you too have fallen victim to one of the most incredible marketing campaigns of all time. A diamond is intrinsically worthless, and against popular belief, they really aren’t that rare. Their resale value is next to nothing. So why are we willing to spend so much on a ring? Well, we can trace that back to the 19th century. Before 1866, diamonds had been rare, but when massive discoveries were found in South Africa, the rock was on the verge of losing its value. Thats when Cecil Rhodes stepped in and founded De Beers Corporation – consolidating the mines and restricting supply, maintaining the fiction that diamonds were scarce and had inherent value. The real change was in 1938, when the company hired N.W. Ayer to increase sales. By tying their product to love, and specifically to a marriage proposal, by the end of the century, over 80% of all brides…
Please provide steps by step answer with proper explanation with final answer....
How can cryptocurrency's advantage and disadvantages help the economy
What is Comparable Worth?
would you be able to finish the remaining blank slots?