An oil well could produce a net income of P 15,000,000.00 per year for 25 years is being considered to be purchased by businessman. If the return on investment is 20% out of the net income and a sinking fund at 189%interest is to establish to recover the investment. How much must be paid to the oil well.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An oil well could produce a net income of P 15,000,000.00 per year
for 25 years is being considered to be purchased by businessman.
If the return on investment is 20% out of the net income and
a sinking fund at 18%interest is to establish to recover the
investment. How much must be paid to the oil well.
Transcribed Image Text:An oil well could produce a net income of P 15,000,000.00 per year for 25 years is being considered to be purchased by businessman. If the return on investment is 20% out of the net income and a sinking fund at 18%interest is to establish to recover the investment. How much must be paid to the oil well.
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