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Which of the following power plants is the better investment, assuming 4% interest on the sinking fund and no salvage value in either case? Coal
Which of the following power plants is the better investment, assuming 4% interest on the sinking fund and no salvage value in either case?
Coal plant which costs P100k, will last 8 years & cost annually P20k to operate.
Fuel oil plant which costs P30k, will last 6 years and cost annually P30k to operate.
Using ROR what is the total cost of Coal Plant?
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