Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NEED ANSWERS AND SOLUTUONS ASAP A distiltation column can be purchased and instaled for P 2,000,000. It will incur P35,000 in operations and mainterance expenses

NEED ANSWERS AND SOLUTUONS ASAP image text in transcribed
A distiltation column can be purchased and instaled for P 2,000,000. It will incur P35,000 in operations and mainterance expenses and yet can start senerating revenues of P125.000 each Inonth as soon as it is installed. The distilltion column could be sold at the end of its useful Iffe of 5 years at an estimated price of P150,000. The cost of capital is 14% per annum. The relivestment rate is 12\$. Determine the criterion wherein the column is deemed acceptable ushe the following methods: - Present Worth Aralysis Mothod (Assume that your final numerical answers is rounded off up to 2 decimal places and is in terms of pesos). - Annual Worth Analyss Method (Assurte that your final numerical answers is rounded off up to 2 decimal places and is in terios of peses) - Future Worth Analysis Method (Assume that your final numerical answers is rounded off up to 2 decimal places and is in terms of pesos): - internal Rate of Return (lRR) Method (Assume that your final numerical answers is rounded off up to 2 decimal places and is in terms of percentage) - Eselicit Reinvestment Rate of Retum (ERRR) Method (Assume that your final numerical answers is rounded off up to 2 decimal places and is in terms of percentage) - External Rate of Return IERR) Method (Assume that your final numerical answers is founded off up to 2 decinal places and is in terns of percentage) - Simple Payback Period (Ausume that your final numencal answers is rounded off up to 2 decimal places and is in terns of years. Assume also that the acceptable payback period is 25 years. - Discounted Payback Period CAssume that your finat numerical answers is rounded off up to 2 decimal places and is in terms of years. Assume aho that the acceptable payback period is 2.5 years)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computational Finance And Its Applications

Authors: C. A. Brebbia, M. Costantino

1st Edition

1853127094, 978-1853127090

More Books

Students also viewed these Finance questions

Question

What is the competition?

Answered: 1 week ago

Question

What is the relative priority among the viable goals?

Answered: 1 week ago