ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Instead of paying P100,000 in annual rest for office space at the beginning of each year for the next 10 years, an engineering firm has decided to take out a 10 year P100,000 loan for a new building at 6% interest. The firm will invest P100,000 of the rent saved and earned 18% annual interest on that amount. What will be the difference between the revenue and expenses?
a.Firm will need P17,900 extra
b. Firm will have P21,500 left over
c. Firm will break evend
d.Firm will need P13,000 extra
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