Question
Ms. Paloma plans to upgrade his machinery for his processing plants. The machine costing 15,000 US dollars (USD), shipping costs 2,000 USD and installation and
Ms. Paloma plans to upgrade his machinery for his processing plants. The machine costing 15,000 US dollars (USD), shipping costs 2,000 USD and installation and commissioning fees of 25,000 Philippine Peso (Php). Additionally, the machine needs an operator with a monthly wage of 15,000 Php a month and maintenance and operation costs of 50,000 Php annually. All first cost is growing for 10% per annum. If the life of the machine is 12 yrs with 15% salvage value of the first cost and Mr. Uy expects 25% of the investment. Is it a good investment or not? Solve using ROR, AWM, Present Worth Method, and Future worth Method. *NOTE rate of money is 1USD = 48.00 Php.
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