A company manufacturing acids, upon inspection of the roofing of the plant, found out that it is badly corroded from the acid fumes and would need to be replaced. To try to get some more life out of the roofing, te company consulted a roofing coating contractor who presented the company with two options. The first option is coating that will cost ₱20,000 which would extend the life of the roofing for 3 years from the date of application. And the second option will cost P30,000 and which would extend the life of the roofing for 5 years from the date of application. At what rate of return are the two investments equal?
A company manufacturing acids, upon inspection of the roofing of the plant, found out that it is badly corroded from the acid fumes and would need to be replaced. To try to get some more life out of the roofing, te company consulted a roofing coating contractor who presented the company with two options. The first option is coating that will cost ₱20,000 which would extend the life of the roofing for 3 years from the date of application. And the second option will cost P30,000 and which would extend the life of the roofing for 5 years from the date of application. At what rate of return are the two investments equal?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company manufacturing acids, upon inspection of the roofing of the plant, found out that it is
badly corroded from the acid fumes and would need to be replaced. To try to get some more life
out of the roofing, te company consulted a roofing coating contractor who presented the
company with two options. The first option is coating that will cost ₱20,000 which would extend
the life of the roofing for 3 years from the date of application. And the second option will cost
P30,000 and which would extend the life of the roofing for 5 years from the date of application.
At what
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