A taxi operator purchased a new unit with a down payment of P400 000.00 and monthly payments of P12 500.00 for the next three years. The unit is expected to be used for eight years and will be sold for P40 000.00 after that time. The estimated net monthly income from the unit (depreciation included) is P25 000.00 for the first five years and P22 000.00 for the last three years. Determine (a) the payback period; (b) the future worth of the investment for an interest rate of 18% compounded monthly. (ANSWER: 32 months, P2.077M)
A taxi operator purchased a new unit with a down payment of P400 000.00 and monthly payments of P12 500.00 for the next three years. The unit is expected to be used for eight years and will be sold for P40 000.00 after that time. The estimated net monthly income from the unit (depreciation included) is P25 000.00 for the first five years and P22 000.00 for the last three years. Determine (a) the payback period; (b) the future worth of the investment for an interest rate of 18% compounded monthly. (ANSWER: 32 months, P2.077M)
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...
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V2. A taxi operator purchased a new unit with a down payment of P400 000.00 and monthly payments of P12 500.00 for the next three years. The unit is expected to be used for eight years and will be sold for P40 000.00 after that time. The estimated net monthly income from the unit (depreciation included) is P25 000.00 for the first five years and P22 000.00 for the last three years. Determine (a) the payback period; (b) the future worth of the investment for an interest rate of 18% compounded monthly. (ANSWER: 32 months, P2.077M)
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