How much could BTU Oil & Gas Fracking afford to spend on new equipment every start of the year for 3 years, if it expects a profit of P50 million at the beginning of the 3rd year, assumed rate of return is 20% per year. Calculate it manually, not in excel. Show complete solution and cash flow diagram.
How much could BTU Oil & Gas Fracking afford to spend on new equipment every start of the year for 3 years, if it expects a profit of P50 million at the beginning of the 3rd year, assumed rate of return is 20% per year. Calculate it manually, not in excel. Show complete solution and cash flow diagram.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How much could BTU Oil & Gas Fracking afford to spend on new equipment
every start of the year for 3 years, if it expects a profit of P50 million at the
beginning of the 3rd year, assumed
ANS. 13,736,263.74
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