Instead of paying P100,000 in annual rent for office space at the beginning of each year for the next 10 years, an engineering firm has decided to take out a 10- year P1,000,000 loan for a new building at 6% interest. The firm will invest P100,000 of the rent saved and earn 15% annual interest on that amount. What will be the difference between the firm's annual revenue and expenses? O P 10,205.13 O P 13,205.13 O P 11,205.13 O P 128,205.13 O P117,000.00 P 115,000.00

Instead of paying P100,000 in annual rent for office space at the beginning of each year for the next 10 years, an engineering firm has decided to take out a 10- year P1,000,000 loan for a new building at 6% interest. The firm will invest P100,000 of the rent saved and earn 15% annual interest on that amount. What will be the difference between the firm's annual revenue and expenses? O P 10,205.13 O P 13,205.13 O P 11,205.13 O P 128,205.13 O P117,000.00 P 115,000.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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