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N INVESTMENT OF P270,000.00 ON SHOP WITH THE FOLLOWING DATA: UNIFORM ANNUAL REVENUE - P185,000.00 FOR 5 YEARS OPERATION AND MAINTENANCE - P85,000.00/YEAR TAXES/INSURANCE - 5% OF THE FIRST COST SALVAGE VALUE OF THE COMPUTERS AFTER 5 YEARS -10% OF INVESTMENT EXPECTED EARNINGS ON CAPITAL - 25% PROVE THAT THIS INVESTMENT IS JUSTIFIABLE OR NOT BY USING ROR METHOD, AW METHOD, PW METHOD, FW METHOD

N INVESTMENT OF P270,000.00 ON SHOP WITH THE FOLLOWING DATA: UNIFORM ANNUAL REVENUE - P185,000.00 FOR 5 YEARS OPERATION AND MAINTENANCE - P85,000.00/YEAR TAXES/INSURANCE - 5% OF THE FIRST COST SALVAGE VALUE OF THE COMPUTERS AFTER 5 YEARS -10% OF INVESTMENT EXPECTED EARNINGS ON CAPITAL - 25% PROVE THAT THIS INVESTMENT IS JUSTIFIABLE OR NOT BY USING ROR METHOD, AW METHOD, PW METHOD, FW METHOD

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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AN INVESTMENT OF P270,000.00 ON SHOP WITH THE FOLLOWING DATA:

  • UNIFORM ANNUAL REVENUE - P185,000.00 FOR 5 YEARS
  • OPERATION AND MAINTENANCE - P85,000.00/YEAR
  • TAXES/INSURANCE - 5% OF THE FIRST COST
  • SALVAGE VALUE OF THE COMPUTERS AFTER 5 YEARS -10% OF INVESTMENT
  • EXPECTED EARNINGS ON CAPITAL - 25%

PROVE THAT THIS INVESTMENT IS JUSTIFIABLE OR NOT BY USING ROR METHOD, AW METHOD, PW METHOD, FW METHOD

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