Question
.Answer the following question with complete SOLUTIONS and CASH FLOW DIAGRAM . An engineer launches a project in the country's top technohub. This involves rental
.Answer the following question with complete SOLUTIONS and CASH FLOW DIAGRAM.
An engineer launches a project in the country's top technohub. This involves rental of a computer unit for online class students. He felt that because of the density of students in the area, 90% of his 30-units will be occupied per sem (5 months each) per year. He desires a rate of return of 20%. Other pertinent data are the following:
Assess the project using (1) ROR, (2) Present Worth Method, and (3) Future Worth Method. (4) Estimate the payback period of this project.
Office investment Computer investment per unit Cost of computers after 10 yrs Office rental per month Computer rental per unit per month Annual maintenance budget per unit Business tax Insurance P 1,000,000 P 35,000 P 5,000 P 9,000 P 2,000 P 5,000 1% of Total Investment 0.5% of Total Investment
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