Answered: or the first 6 years and then P130,000…

or the first 6 years and then P130,000 each year thereafter for operating expenses with interest at 6% compounded quarte

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 13E: Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a...

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Question

Determine the present worth of a commercial space which requires P1,500,200 for original construction: P101,200 at the end of every year for the first 6 years and then P130,000 each year thereafter for operating expenses with interest at 6% compounded quarterly? Show complete solution and formula used. Provide cashflow diagram. Write it legibly in a piece of paper and not in excel.

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