E. 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 FW Method.
E. 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 FW Method.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:B. 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,
t00,000.lf money is worth 12%, show by
computation if this business is profitable or not
using FW Method.
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