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A project is estimated to require an initial investment of P80,000 in physical assets, which would have an economic life of 10 years and be
A project is estimated to require an initial investment of P80,000 in physical assets,
which would have an economic life of 10 years and be worth P10,000 in salvage
value at the end of that time. The estimated gross annual savings will be P17,000
and the out of pocket expenses will be P1,400 per year. The opportunity cost of
capital before income taxes, is 10%. Use a) Annual Worth, b) Present Worth, c) Future Worth, and d) IRR.
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