Your boss wants to buy an equipment for 30,000php. It is believed that this equipment will bring an additional 8,500 php income per year. The equipment's value after 5 years will be 4,500 php. Your boss asks you at what value should the MARR be to break even between profit or loss. What would be your answer? Solve using present worth, annual worth and future worth. Tabulate your answers and show cash flow diagram.

Your boss wants to buy an equipment for 30,000php. It is believed that this equipment will bring an additional 8,500 php income per year. The equipment's value after 5 years will be 4,500 php. Your boss asks you at what value should the MARR be to break even between profit or loss. What would be your answer? Solve using present worth, annual worth and future worth. Tabulate your answers and show cash flow diagram.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 4EA: Assume a company is going to make an investment of $450,000 in a machine and the following are the...

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