LEIS company is planning to borrow P10.5M for a company expansion and is not sure what the interest rate will be when it applies for the loan. The rate could be as low as 10% per year or as high as 12% per year for a 5-year loan. LEIS company will only move forward with the project if the annual worth of the expansion is below P5.7M. The maintenance and operation cost P3.1M per year. The salvage value could be P2M if the interest rate is 10% or P2.5M if it is 12% per year. Use annual worth method to determine the value of each option ANSWER for ALTERNATIVE A: Blank 1 ANSWER for ALTERNATIVE B: Blank 2

LEIS company is planning to borrow P10.5M for a company expansion and is not sure what the interest rate will be when it applies for the loan. The rate could be as low as 10% per year or as high as 12% per year for a 5-year loan. LEIS company will only move forward with the project if the annual worth of the expansion is below P5.7M. The maintenance and operation cost P3.1M per year. The salvage value could be P2M if the interest rate is 10% or P2.5M if it is 12% per year. Use annual worth method to determine the value of each option ANSWER for ALTERNATIVE A: Blank 1 ANSWER for ALTERNATIVE B: Blank 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A store is expected to generate $10,000 in earnings next month. How much earnings will be accumulated by the end of the year if the earnings are projected to grow by 30 basis points (0.3%) each month, and if the interest rate is 3.72% APR compounded monthly?
A man has a will of P1,000,000 from his father. If his father deposited an amount of P750,000 in a trust fund earning 8% compounded semi annually, after how many years will the man receive his will?
Mr. Green had a housing loan amounting to P2,664,676, and it was to be amortized by a group of 30 end of year payments in an ascending linear progression. Mr. Green had an initial payment of P95,000 during the first end of year. The interest rate of the loan was 15% compounded annually, how much should the increase of payment every year in the amortization? u Answered 50,080.45 rrect Answer 65,371 margin of error +/- 0.1
I need solve this question in Engineering Economics
At a simple interest rate of 13% per year, determine how long will it take $7,500 to increase to 4 times as much. Compare the time it will take to double if the rate is 20% per year simple interest At an interest rate of 13%, it will take __ years for the amount to increase 4 times as much. It will take __ years for the amount to double at an interest rate of 20%.
Lourdes has just retired and plans to consume $12829 from the retirement account every year for the next 14 years starting one year from today, meeting the rest of the expenses from other resources. If the annual interest rate is 9% compounded bimonthly, how much does Lourdes have in the retirement account today?
You borrowed money from the bank with a simple interest 8%, find the present worth of P25,000, which is due at the end of 10 months.
Compute the effective interest rate and the amount that Mr. David will have in 15 years if P5,000 is deposited in the account at the end of each quarter during that time that it earns 8% interest, compounded quarterly.
You borrowed money today to be paid in 8 equal payments at the end of 8 quarters. If the interest rate is 18% compounded quarterly, how much is initially borrowed if the quarterly payment is 3,500 Php?
The nominal interest rate is 4% per year, but compounded quarterly. What is the effective annual rate? 4.000% 4.400% 4.136% 4.336% 4.060%
A student has money given by his grandfather in the amount of P67,000. How much money in the form of interest will he get if the money is put in a bank that offers annual interest rate of 8% compounded monthly, at the end of 8 years?
Q 6 please