parcel of land can be leased for a period of 10 years. Initial development costs for clearing, paving and constructing a small office shed on the lot is estimated to be P250, 000. If the net annual revenue for the first year is P22, 000 and increases by 5% per year thereafter until the tenth year. What is the equivalent uniform net annual revenue for ten years if interest per year is 8%? a. P25,087 b. P26,831 c. P18,038 d. P19,987
parcel of land can be leased for a period of 10 years. Initial development costs for clearing, paving and constructing a small office shed on the lot is estimated to be P250, 000. If the net annual revenue for the first year is P22, 000 and increases by 5% per year thereafter until the tenth year. What is the equivalent uniform net annual revenue for ten years if interest per year is 8%? a. P25,087 b. P26,831 c. P18,038 d. P19,987
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...
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A parcel of land can be leased for a period of 10 years. Initial development costs for clearing, paving and constructing a small office shed on the lot is estimated to be P250, 000. If the net annual revenue for the first year is P22, 000 and increases by 5% per year thereafter until the tenth year. What is the equivalent uniform net annual revenue for ten years if interest per year is 8%?
a. P25,087
b. P26,831
c. P18,038
d. P19,987
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