A project capitalized for P 2,850,000 invested in depreciable asset will earn a uniform annual revenue of P 1,650,000 for 10 years. The costs foroperation and maintenance total P 725,000 a year, and taxes and insurance will cost 3% of the first cost each year. The company expects itscapital to earn 14% before income taxes.*** Type the letter of the correct answer.Using ROR method1. The depreciation cost is:a) P 546,383.592. The total annual cost is:a) P 957,883.593. The rate of return is:• Using AW method5. The annual revenue is:a) 44.92%4. Is this a desirable investment?a) NOb) YESa) P 1,750,0006. The total annual cost is:a) P 1,755,883.597. Annual worth is:b) P 147,383.59a) P 293,116.418. Would you recommenda) NOb) P 1,356,883.59b) 38.85%b) P 3,240,000b) P 1,543,606.94b) - P 105,883.59investing?b) YESc) P 285,000.00c) P 1,144,606.94c) 24.28%c) MAYBEc) P 2,429,600c) P 1,356,883.59c) P 155,500.00c) MAYBEd) P 334,106.94d) P 1,095,500.00d) 22.46%d) I don't knowd) P 1,650,000d) P 1,494,500.00d) P 106,393.06d) I don't know

Rate or return or RoR refers to the net profit or loss from any investment for a particular period…

A project capitalized for P 2,850,000 invested in depreciable asset will earn a uniform annual revenue of P 1,650,000 for 10 years. The costs for operation and maintenance total P 725,000 a year, and taxes and insurance will cost 3% of the first cost each year. The company expects its capital to earn 14% before income taxes. **** Type the letter of the correct answer. • Using ROR method 1. The depreciation cost is: a) P 546,383.59 2. The total annual cost is: a) P 957,883.59 3. The rate of return is: b) P 147,383.59 b) P 1,356,883.59 a) 44.92% 4. Is this a desirable investment? a) NO b) YES b) 38.85% c) P 285,000.00 c) P 1,144,606.94 c) 24.28% c) MAYBE d) P 334,106.94 d) P 1,095,500.00 d) 22.46% d) I don't know

A project capitalized for P 2,850,000 invested in depreciable asset will earn a uniform annual revenue of P 1,650,000 for 10 years. The costs for operation and maintenance total P 725,000 a year, and taxes and insurance will cost 3% of the first cost each year. The company expects its capital to earn 14% before income taxes. **** Type the letter of the correct answer. • Using ROR method 1. The depreciation cost is: a) P 546,383.59 2. The total annual cost is: a) P 957,883.59 3. The rate of return is: b) P 147,383.59 b) P 1,356,883.59 a) 44.92% 4. Is this a desirable investment? a) NO b) YES b) 38.85% c) P 285,000.00 c) P 1,144,606.94 c) 24.28% c) MAYBE d) P 334,106.94 d) P 1,095,500.00 d) 22.46% d) I don't know

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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