An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance cost are as follows: 1styear = P 15, 000 2ndyear = P 17, 000 3rdyear =P 19, 000 4thyear = P 21, 000 5thyear = P 23, 000 How much be budgeted and deposited in a fund that earns 9% per year compounded annually in order to pay for the machine.
An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance cost are as follows: 1styear = P 15, 000 2ndyear = P 17, 000 3rdyear =P 19, 000 4thyear = P 21, 000 5thyear = P 23, 000 How much be budgeted and deposited in a fund that earns 9% per year compounded annually in order to pay for the machine.
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 3P
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An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance cost are as follows:
1styear = P 15, 000
2ndyear = P 17, 000
3rdyear =P 19, 000
4thyear = P 21, 000
5thyear = P 23, 000
How much be budgeted and deposited in a fund that earns 9% per year compounded annually in order to pay for the machine.
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