To maintain its newly acquired equipment, the company needs 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 eight years. At 6%, what is the present worth of these costs?

To maintain its newly acquired equipment, the company needs 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 eight years. At 6%, what is the present worth of these costs?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

To maintain its newly acquired equipment, the company needs 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 eight years. At 6%, what is the present worth of these costs?

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