MANUAL SOLUTION

1.A store plans on investing on a new grill oven that costs P100,000. It will generate revenues of P2,500 per day and expenses of P800 per day. Suppose the store will be operating 320 days in a year. Evaluate the acceptability of this investment if the grill oven will have a lifespan of six years and MARR is 10% per year. Use PW, Fw, and AW methods. 2. A new air conditioning unit costs P150,000 and will have a salvage value of P15,000 after 5 years. Electrical cost per kWh is P1.25. Calculate the annual savings in terms of electrical savings if MARR is 15% per year