An Engineer has acquired a dump truck for Php 750,000. It is expected that the new truck will increase the firm's revenue by Php 500,000 annually. The operating expenses are anticipated to be Php 150,000 per year. The truck's market value is expected to decrease by Php 125,000 each year it is in service. If the firms plans to keep the truck for only 2 years, what is the annual workth of this investment? The minimum acceptable rate of return (MARR) is 18% per year.

An Engineer has acquired a dump truck for Php 750,000. It is expected that the new truck will increase the firm's revenue by Php 500,000 annually. The operating expenses are anticipated to be Php 150,000 per year. The truck's market value is expected to decrease by Php 125,000 each year it is in service. If the firms plans to keep the truck for only 2 years, what is the annual workth of this investment? The minimum acceptable rate of return (MARR) is 18% per year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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