cayan invested P280, 000 which will be used in a project that will produce a uniform annual revenue of P180,000 for 5 years and then have a salvage value of 16% of the investment. Out-of-pocket costs for operation and maintenance will be P80,000 per year. Taxes and insurance will be 3% of the first cost per year. Atty Gacayan expects capital to earn not less than 30% before income taxes. Determine if the investment is good and Calculate the following: a. Calculate using Rate of Return Method.

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