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A sales engineer claims that his pump is economically justifiable. He says that for a cost of P250,000.00, it will have a market value


A sales engineer claims that his pump is economically justifiable. He says that for a cost of P250,000.00, it will have a market value of P30,000 at the end of 10 years. If the increased productivity attributable to this project would be P55,000 per year, is he lying? Take MARR = 15% 1. An equipment costs P150,000. After 3 years, it is estimated that it will cost P120,000. This equipment will equivalently provide P15,000 profit per year. Find FW. MARR = 20%. 2. 3. How can the equipment in number 2 be justifiable? A. Raise the annuity to at least P38,241.76 . Raise the MARR to 23% C. Lower the MARR to 3.5% D. Raise the annuity by P20,000.00

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