A construction contractor opted to purchase a dump truck for transportation and dumping of soil at a construction site. The cashflow details are provided as follows:Initial purchase priceisPhp 2,500,000. Annual Operating costisPhp 450,000 at the end of year 1 and increasing by Php 3,000 in the subsequent years until the end of useful life. Annual income is Php 120,000 with salvage value of Php 550,000 at the end of 10years.Illustrate the detailed cashflow and compute for the present worth of all costs.
A construction contractor opted to purchase a dump truck for transportation and dumping of soil at a construction site. The cashflow details are provided as follows:Initial purchase priceisPhp 2,500,000. Annual Operating costisPhp 450,000 at the end of year 1 and increasing by Php 3,000 in the subsequent years until the end of useful life. Annual income is Php 120,000 with salvage value of Php 550,000 at the end of 10years.Illustrate the detailed cashflow and compute for the present worth of all costs.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 22P: The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500,...
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A construction contractor opted to purchase a dump truck for transportation and dumping of soil at a construction site. The cashflow details are provided as follows:Initial purchase priceisPhp 2,500,000. Annual Operating costisPhp 450,000 at the end of year 1 and increasing by Php 3,000 in the subsequent years until the end of useful life. Annual income is Php 120,000 with salvage value of Php 550,000 at the end of 10years.Illustrate the detailed cashflow and compute for the present worth of all costs.
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