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Instead of paying P100,000.00 in annual rent for office space at the beginning of each year for the next 10 years, the engineering firm has
Instead of paying P100,000.00 in annual rent for office space at the beginning of each year for the next 10 years, the engineering firm has decided to take out a 10 year P 1,000,000.00 loan for a new building at 6% interest. The firm will invest P 100,000.00 of the rent saved and earn 18% annual interest on that amount. What will be the difference between the firm's annual revenue and expenses?
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