Determine the Annual Worth of the investment using AW Method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PROBLEM: An investment is be made with an intial capital of PHP 759544. It is expected that there will be an annual revenue for this investment of PHP 469986; while it also entitled to an annual operationa nd mantenace cost of PHP 45691 and annual taxes of PHP 9045. Its salvage value at the end of its useful life (10 years) is PHP 18318. This investment has a MARR of 15% (same as interest rate).
QUESTION: Determine the Annual Worth of the investment using AW Method.
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