4-a proposed petroleum refinery facility has an estimated total investment of 1000000 of which 100000$ is for land and 700000$ is for fixed and other physical property subjected to depreciation .profit taxes are to be neglected. If the stock holders require a 15% interest rate on their total investrnent and useful life is 10 years .determine the profit in first year, profit before deducting the sinking-fund depreciation charge, assuming no salvage value for the physical property.
4-a proposed petroleum refinery facility has an estimated total investment of 1000000 of which 100000$ is for land and 700000$ is for fixed and other physical property subjected to depreciation .profit taxes are to be neglected. If the stock holders require a 15% interest rate on their total investrnent and useful life is 10 years .determine the profit in first year, profit before deducting the sinking-fund depreciation charge, assuming no salvage value for the physical property.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4-a proposed petroleum refinery facility has an estimated total
investment of 1000000 of which 100000$ is for land and 700000$ is
for fixed and other physical property subjected to depreciation .profit
taxes are to be neglected. If the stock holders require a 15% interest
rate on their total investrnent and useful life is 10 years .determine the
profit in first year, profit before deducting the sinking-fund
depreciation charge, assuming no salvage value for the physical
property.
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