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

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