Please fast answer A printing press machine has a cash equivalent ofP250,000. For the first three years, it will provideP20,000 worth of profit each year. For the nextfour years, annual profit will be P35,000. For thelast two years, expenses will exceed revenues andwill have a loss of P10,000 each year. Calculatethe acceptability of this investment using FWmethod if MARR is 18% per year. What is ERR if e= 15%?Correct Answer Show Solutiona) -683,616b) 4.84%

Given that, Investment is P250000 first, three-year profit is P20000. next four-year profit is…

the first three years, it will prov of profit each year. For the n hual profit will be P35,000. For expenses will exceed revenues a ss of P10,000 each year. Calcul ity of this investment using RR is 18% per year. What is ERR

the first three years, it will prov of profit each year. For the n hual profit will be P35,000. For expenses will exceed revenues a ss of P10,000 each year. Calcul ity of this investment using RR is 18% per year. What is ERR

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please fast answer

A printing press machine has a cash equivalent of
P250,000. For the first three years, it will provide
P20,000 worth of profit each year. For the next
four years, annual profit will be P35,000. For the
last two years, expenses will exceed revenues and
will have a loss of P10,000 each year. Calculate
the acceptability of this investment using FW
method if MARR is 18% per year. What is ERR if e
= 15%?
Correct Answer Show Solution
a) -683,616
b) 4.84%

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