A young graduate wants to invest his savings on a computer rental business. It has been estimated that the investment will cost him Php 200,000, including the space rental, 10 computers and internet connection. He has estimated that each computer will gain profit of Php 20 per day. Assuming that the shop will be open for 320 days in a year, should he invest on the business if he wants MARR of 15% per year for a study period of 5 years?
A young graduate wants to invest his savings on a computer rental business. It has been estimated that the investment will cost him Php 200,000, including the space rental, 10 computers and internet connection. He has estimated that each computer will gain profit of Php 20 per day. Assuming that the shop will be open for 320 days in a year, should he invest on the business if he wants MARR of 15% per year for a study period of 5 years?
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
What is PW?
Calculate the sensitivity (in percent) on investment cost. No need to write the percent symbol.
Calculate the sensitivity (in percent) on annual profit. No need to write the percent symbol.
Transcribed Image Text:A young graduate wants to invest his savings on a computer rental business. It has been estimated that the investment will cost him
Php 200,000, including the space rental, 10 computers and internet connection. He has estimated that each computer will gain
profit of Php 20 per day. Assuming that the shop will be open for 320 days in a year, should he invest on the business if he wants
MARR of 15% per year for a study period of 5 years?
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