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A project capitalized for P50,000 invested in depreciable assets will earn a uniform, annual income of P19,849.00 in ten years. The costs for operation and
A project capitalized for P50,000 invested in depreciable assets will earn a uniform, annual income of P19,849.00 in ten years. The costs for operation and maintenance total P9,000 a year and taxes and insurance will cost 4% of the first cost each year. If the company expects its capital to earn 12% before income taxes, is the investment worthwhile? Use a) ROR Method b) Annual cost method c) Present worth method
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