Question
A Company may acquire an Operating cost of Php 2,358,000 and Maintenance cost of Php 1,387,000 on it's yearly operation and Taxes and insurance amounting
A Company may acquire an Operating cost of Php 2,358,000 and Maintenance cost of Php 1,387,000 on it's yearly operation and Taxes and insurance amounting to 3.6% of the Initial Investment.To start the project, An investment of M can be made in a project that will produce a uniform annual revenue of Php 35,400,000 for 7 years and then have a salvage value of 13% of the initial investment . i= 23%. Having a rate of return of 10.9433%, How much initial Investment must one have to start up the business? "M"
1.Using Annual Worth method, what would be the company's profit?
2. Using Annual Worth method, how much does the Interest of Capital costs?
3. What wold be the actual Tax cost?"
4.What would be the actual depreciation cost?"
5.After 7 years, how much does the initial investment costs after all its' depreciation?
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