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The investment cost of the new equipment is P385,000.00 and will have a market value of P180,000.00 at the end of a study period of eight years. Increased productivity attributable to the equipment will amount to P28,000.00 per year after extra operating costs have been subtracted from the revenue generated by the additional production. Draw the cash-flow diagram for this investment opportunity. If the firm's MARR is 21% per year, is this proposal a 4. sound one? c.Use the AW method. The new equipment cost is P106,000.00.

The investment cost of the new equipment is P385,000.00 and will have a market value of P180,000.00 at the end of a study period of eight years. Increased productivity attributable to the equipment will amount to P28,000.00 per year after extra operating costs have been subtracted from the revenue generated by the additional production. Draw the cash-flow diagram for this investment opportunity. If the firm's MARR is 21% per year, is this proposal a 4. sound one? c.Use the AW method. The new equipment cost is P106,000.00.

ENGR.ECONOMIC ANALYSIS
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 answer C with new equipment106,000cost is 

4. The investment cost of the new equipment is P385,000.00 and' will have a market value of P180,000.00 at the end of a study period of eight years. Increased productivity attributable to the equipment will amount to P28,000.00 per year after extra operating costs have been subtracted from the revenue generated by the additional production. Draw the cash-flow diagram for this investment opportunity. If the firm's MARR is 21% per year, is this proposal a sound one? c.Use the AW method. The new equipment cost is P106,000.00.
Transcribed Image Text:4. The investment cost of the new equipment is P385,000.00 and' will have a market value of P180,000.00 at the end of a study period of eight years. Increased productivity attributable to the equipment will amount to P28,000.00 per year after extra operating costs have been subtracted from the revenue generated by the additional production. Draw the cash-flow diagram for this investment opportunity. If the firm's MARR is 21% per year, is this proposal a sound one? c.Use the AW method. The new equipment cost is P106,000.00.
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