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will have a loss of P10,000 each year. Calculate the acceptability of this investment using FW method if MARR is 18% per year. What is ERR if e = 15%?

will have a loss of P10,000 each year. Calculate the acceptability of this investment using FW method if MARR is 18% per year. What is ERR if e = 15%?

Essentials Of Investments
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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Do not round off the answer must be -686,616 and 4.84%

A printing press machine has a cash equivalent of P250,000. For the first three years, it will provide P20,000 worth of profit each year. For the next four years, annual profit will be P35,000. For the last two years, expenses will exceed revenues and will have a loss of P10,000 each year. Calculate the acceptability of this investment using FW method if MARR is 18% per year. What is ERR if e = 15%? %3|
Transcribed Image Text:A printing press machine has a cash equivalent of P250,000. For the first three years, it will provide P20,000 worth of profit each year. For the next four years, annual profit will be P35,000. For the last two years, expenses will exceed revenues and will have a loss of P10,000 each year. Calculate the acceptability of this investment using FW method if MARR is 18% per year. What is ERR if e = 15%? %3|
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