how do u get the 0.995?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 35SP
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how do u get the 0.995?

HRD = P90,000 + 5% of janitorial
Janitorial = P50,000 + 10% of HRD
If we solve equation then,
HRD = P90,000 + 5% (P50,000 + 10% of HRD)
HRD = P90,000 + P2,500 +0.005 HRD
HRD = P92,500/0.995
= P92,965
Janitorial P50,000 + 10% of P92,965
= P59,297
Lets make an allocation:-
Transcribed Image Text:HRD = P90,000 + 5% of janitorial Janitorial = P50,000 + 10% of HRD If we solve equation then, HRD = P90,000 + 5% (P50,000 + 10% of HRD) HRD = P90,000 + P2,500 +0.005 HRD HRD = P92,500/0.995 = P92,965 Janitorial P50,000 + 10% of P92,965 = P59,297 Lets make an allocation:-
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