An initial investment of P20, 000, 000 was put up for a new business that will produce an annual revenue of P12, 000,000 for 15 years and will have a salvage value of P2, 000,000. Annual expenses for its operation and maintenance will amount to P6, 000, 000.lf money is worth 12%, show by computation if this business is profitable or not using PW Method.

An initial investment of P20, 000, 000 was put up for a new business that will produce an annual revenue of P12, 000,000 for 15 years and will have a salvage value of P2, 000,000. Annual expenses for its operation and maintenance will amount to P6, 000, 000.lf money is worth 12%, show by computation if this business is profitable or not using PW Method.

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

ENGINEERING ECONOMY UPVOTE WILL BE GIVEN. PLEASE WRITE THE COMPLETE SOLUTIONS LEGIBLE. FOLLOW THE INSTRUCTIONS CAREFULLY. Draw CASH FLOW DIAGRAMS for the GIVEN AND REQUIRED/FIND. Begins the solutions by writing the equations/formulas. Use 2 decimal places and Box the final answer. Five friends plan to establish a consulting firm after 5 years. The plan is for each to make semi-annual deposits of P15,000 in their respective bank accounts starting at the end of the first semester after the agreement up to the 5th year. All deposits are to be made every end of the periods. One of them is not capable of starting at the same time with everyone because of a present obligation but promised to start her deposits by the end of the first semester after the second year until the 5th year. How much should she deposit in equal amounts to save as much as each of her friends if money is worth 14% compounded semi-annually?
1
Can Please Help Me: Engineering Economics/Civil Engineering 60 minutes only the given time. Wish you could help me. I will give UPVOTE and GOOD FEEDBACK. ////Question Davis tractor is purchased with operating cost of 400 per year. If the expected life is 25 years and money is worth 10%, what deduction from the purchased price would compensate the buyer for the additional operating cost? Make a cash flow diagram. ////Question
Please answer the correct answer please ASAP Don't answer by pen paper please Bank A offers interest of 13% per year (nominal interest) and interest payments every quarter. The manager at Bank B also wants to provide the same interest as Bank A's effective annual interest, but the interest is paid every month. What nominal interest should Bank B offer?
Please try to solve in 1 hour
Hide Image Transcript Mildred can purchase a municipal bond with a par (face) value of $1000 that will mature in 4 years. The bond pays 6% interest compounded quarterly. If she can buy this bond for $1050, what rate of return will she earn? Contributed by Paul R. McCright, University of South Florida
Engineering Economy A man made a loan of $300 to be repaid with $325 at the end of 85 days. What was the annual (simple) interest rate?
Please use the formulae and make the solution Project Month Month Month Month Status at the end of Month 3 Phases 1 2 3 4 Requirements Definition S-F Complete, spent $10,000 Architecture and Design SPF F Complete, spent $12000 Development and unit testing System testing and Operation S -PF 50% done, spent $9000 Not yet started
Mr. Allahditta who runs a general store at Jodia Bazar, a customer namely Mr. Arif visited his shop and demanded 100 bags of Basmati rice, Mr. Allahditta demanded Rs. 3,000/- per bag. Mr. Arif accepted the same price & paid the whole amount, he also instructed to deliver in his godown which is located at Site area on next day, however Mr. Allahditta delivered on same day on given address. Whether Mr. Allahdita violated any law, as he did not delivered on next day? Answer must be in (Yes or No) Give reason to support your answer in part a
What does the project cash flow include?
MANUAL SOLUTION AND CASH FLOW DIAGRAM