Question
INVESTMENT OF MACHINE: 2,000,000 REVENUE: 125,000 PER MONTH EXPENSE: 35,000 PER MONTH SALVAGE VALUE OF MACHINE: 150,000 @ 4 YRS USEFUL LIFE: 4 YEARS COST
INVESTMENT OF MACHINE: 2,000,000 REVENUE: 125,000 PER MONTH EXPENSE: 35,000 PER MONTH SALVAGE VALUE OF MACHINE: 150,000 @ 4 YRS USEFUL LIFE: 4 YEARS COST OF CAPITAL: 15% PER ANNUM REINVESTMENT RATE: 12%
FIND THE FOLLOWING AND SHOW THE SOLUTION COMPLETE (ROUND OFF TO THE NEAREST PESO): A. EFFECTIVE INTEREST RATE B. PRESENT WORTH C. ANNUAL WORTH D. FUTURE WORTH
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Energy, Foresight And Strategy
Authors: Thomas J Sargent
1st Edition
1317329686, 9781317329688
