An initial capital of P15,000 was put up for a new business that will produce an annual income of P6000 for 5 years and that will have a salvage value of P2,500 at that time. Annual expenses for its operation (salaries and wages, insurance, taxes) and maintenance amounts to P3000. If money is worth 10% compounded annually, is this investment profitable or not, if so what is the difference in the present worth of the net income to his initial capital?

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