The data below are estimated for the project for the project study of a certain business investment. IF money is worth 15% which of the project is more desirable, using Present Worth Method and determine the difference in profit from each project study. For A, the initial investment is P5,000, with annual revenue of P2000. Annual disbursement amounts to P650 with no salvage value at the end of its life which is 4 years. For B, the initial investment is P8,000, with annual revenue of P3000. Annual disbursement is P1500 with no salvage value at the end of its life which is 8 years.
The data below are estimated for the project for the project study of a certain business investment. IF money is worth 15% which of the project is more desirable, using Present Worth Method and determine the difference in profit from each project study. For A, the initial investment is P5,000, with annual revenue of P2000. Annual disbursement amounts to P650 with no salvage value at the end of its life which is 4 years. For B, the initial investment is P8,000, with annual revenue of P3000. Annual disbursement is P1500 with no salvage value at the end of its life which is 8 years.
Chapter11: Capital Budgeting Decisions
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Problem 5PB: Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated...
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The data below are estimated for the project for the project study of a certain business
investment. IF money is worth 15% which of the project is more desirable, using Present
Worth Method and determine the difference in profit from each project study.
For A, the initial investment is P5,000, with annual revenue of P2000. Annual
disbursement amounts to P650 with no salvage value at the end of its life which is 4
years.
For B, the initial investment is P8,000, with annual revenue of P3000. Annual
disbursement is P1500 with no salvage value at the end of its life which is 8 years.
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