To maintain its newly acquired equipment, the company need P40,000 per year for the first five years and P60,000 per year for the next five years. In addition, an amount of P140,000 would also be needed at the end of the fifth and the eighth years. At 6%, what is the present worth of these costs?
To maintain its newly acquired equipment, the company need P40,000 per year for the first five years and P60,000 per year for the next five years. In addition, an amount of P140,000 would also be needed at the end of the fifth and the eighth years. At 6%, what is the present worth of these costs?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:To maintain its newly acquired equipment, the company need P40,000
per year for the first five years and P60,000 per year for the next five
years. In addition, an amount of P140,000 would also be needed at the
end of the fifth and the eighth years. At 6%, what is the present worth of
these costs?
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