The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs P380,000 initially and is expected to increase revenue P125,000 per year every year. The software and installation from Vendor B costs P280,000 and is expected to increase revenue P95,000 per year. Manuel's uses a 4-year planning horizon and a 10% per year MARR. What is the present worth of investment from Vendor B (rounded to the nearest peso)? A) P21,137 B P22,507 P17,485 (D) P15,742
The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs P380,000 initially and is expected to increase revenue P125,000 per year every year. The software and installation from Vendor B costs P280,000 and is expected to increase revenue P95,000 per year. Manuel's uses a 4-year planning horizon and a 10% per year MARR. What is the present worth of investment from Vendor B (rounded to the nearest peso)? A) P21,137 B P22,507 P17,485 (D) P15,742
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 18P
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