1. A man wants to invest in a manufacturing company with a capita of PHP 1.5M. The manufacturing company can produce an annual revenue of PHP250,000 for 7 years, but has a salvage value of 7% on the investment. The cost the operation and maintenance will be PHP 130,000 per year. Taxes and insurance will be 13% of the irst year's cost. A man expects the said manufacturing company to earn not less than 28% before ncome taxes.

1. A man wants to invest in a manufacturing company with a capita of PHP 1.5M. The manufacturing company can produce an annual revenue of PHP250,000 for 7 years, but has a salvage value of 7% on the investment. The cost the operation and maintenance will be PHP 130,000 per year. Taxes and insurance will be 13% of the irst year's cost. A man expects the said manufacturing company to earn not less than 28% before ncome taxes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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