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An investment of P270,000 can be made in a project that will produce uniform annual revenue of P185,400 for 5 years and then have a
An investment of P270,000 can be made in a project that will produce uniform annual revenue of P185,400 for 5 years and then have a salvage value of 10% of the investment. Out-of-pocket costs for operation and maintenance will be P81,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 25% before income taxes. Compute the PW, AW, FW and determine if this is a good investment
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