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I need the answers today, I hope you can help me (Show supporting calculations.) 1. The manager of Kingstown Office Supply is planning to acquire
I need the answers today, I hope you can help me
(Show supporting calculations.) 1. The manager of Kingstown Office Supply is planning to acquire a new copier, which will cost Php500,000 and expected to last for 3 years. The new copier is expected to save the firm Php200,000 in year one, Php200,000 in the second year, and Php100,000 in the third year. After three years, the machine can be re-to a junk dealer for Php50,000. Alternatively, the manager can invest the Php500,000 at a guaranteed interest rate of 5%. To maximize profits, should the manager purchase the copier or invest the money at 5%? 2. Gama-X, Incorporated is predicted to grow at an annual rate of 5 percent for a foreseeable future. Php100,000 is the current profits of Gama-X and have not been paid off as dividends. What is the value of the firm assuming the market interest rate is 7% Step by Step Solution
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