Exercise. An engineer is considering establishing his own small company. An investment of Php 1,500,000 immediately and another Php 1,500,000 on the tenth year will be required. The project life is estimated to be 15 years. It is estimated that the sales will be Php 650,000 per year. The man will give up his regular job paying Php 150,000 per year. The operating expenses will be as follows: Materials ... Labor... Selling expenses 40,000 per year 70,000 per year 5,000 per year If the man expect to earn at least 20% on his capital, should he invest? Solve using Future Worth Method.

Exercise. An engineer is considering establishing his own small company. An investment of Php 1,500,000 immediately and another Php 1,500,000 on the tenth year will be required. The project life is estimated to be 15 years. It is estimated that the sales will be Php 650,000 per year. The man will give up his regular job paying Php 150,000 per year. The operating expenses will be as follows: Materials ... Labor... Selling expenses 40,000 per year 70,000 per year 5,000 per year If the man expect to earn at least 20% on his capital, should he invest? Solve using Future Worth Method.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please only answer part B
What are the Flaws in Project Ranking by IRR?
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