An investment of P20,000 will be required at the end of the year. The project would terminate at the end of the 5th year and the assets are estimated to have a salvage value of P26,000 at that time. What is the rate of interest for this project to break-even? 5.74% 8.78% 6.78% O 9.75% O 779% O 472

An investment of P20,000 will be required at the end of the year. The project would terminate at the end of the 5th year and the assets are estimated to have a salvage value of P26,000 at that time. What is the rate of interest for this project to break-even? 5.74% 8.78% 6.78% O 9.75% O 779% O 472

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

An investment of P20,000 will be required at the end of the year. The project
would terminate at the end of the 5th year and the assets are estimated to have
a salvage value of P26,000 at that time. What is the rate of interest for this
project to break-even?
5.74%
8.78%
6.78%
9.75%
7.79%
4.72%

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