An untreated electric wooden pole that will last 15 years under a certain soil condition costs P1500. If a treated pole will last for 25 years, what is the maximum justifiable amount that can be paid for the treated pol, if the maximum return on investment is 15%? Consider annual taxes and insurance amount to 2% of first cost.

An untreated electric wooden pole that will last 15 years under a certain soil condition costs P1500. If a treated pole will last for 25 years, what is the maximum justifiable amount that can be paid for the treated pol, if the maximum return on investment is 15%? Consider annual taxes and insurance amount to 2% of first cost.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 13P

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