An engineer launches a project in the country's top techohub. This involves rental of a computer unit for online class students. He felt that because of the density of students in the area, 90% of his 30-units will be occupied per sem (5 months each) per year. He desires a rate of return of 20%. Other pertinent data are the following: Office investment |Computer investment per unit Cost of computers after 10 yrs Office rental per month Computer rental per unit per month Annual maintenance budget per unit Business tax Insurance P 1,000,000 P 35,000 P 5,000 P 9,000 P 2,000 P 5,000 1% of Total Investment 0.5% of Total Investment Assess the project using (1) ROR, (2) Present Worth Method, and (3) Future Worth Method. (4) Estimate the payback period of this project.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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An engineer launches a project in the country's top
techohub. This involves rental of a computer unit for
online class students. He felt that because of the
density of students in the area, 90% of his 30-units
will be occupied per sem (5 months each) per year.
He desires a rate of return of 20%. Other pertinent
data are the following:
Office investment
Computer investment per unit
|Cost of computers after 10 yrs
Office rental per month
|Computer rental per unit per month
|Annual maintenance budget per unit
Business tax
Insurance
P 1,000,000
P 35,000
P 5,000
P 9,000
P 2,000
P 5,000
| 1% of Total Investment
0.5% of Total Investment
Assess the project using (1) ROR, (2) Present Worth
Method, and (3) Future Worth Method. (4) Estimate
the payback period of this project.
Transcribed Image Text:An engineer launches a project in the country's top techohub. This involves rental of a computer unit for online class students. He felt that because of the density of students in the area, 90% of his 30-units will be occupied per sem (5 months each) per year. He desires a rate of return of 20%. Other pertinent data are the following: Office investment Computer investment per unit |Cost of computers after 10 yrs Office rental per month |Computer rental per unit per month |Annual maintenance budget per unit Business tax Insurance P 1,000,000 P 35,000 P 5,000 P 9,000 P 2,000 P 5,000 | 1% of Total Investment 0.5% of Total Investment Assess the project using (1) ROR, (2) Present Worth Method, and (3) Future Worth Method. (4) Estimate the payback period of this project.
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