Reference no: EM132787836
A Company may acquire an Operating cost of Php 2,358,000 and Maintenance cost of Php 1,387,000 on it's yearly operation and Taxes and insurance amounting to 3.6% of the Initial Investment.To start the project, An investment of M can be made in a project that will produce a uniform annual revenue of Php 35,400,000 for 7 years and then have a salvage value of 13% of the initial investment . i= 23%. Having a rate of return of 10.9433%, How much initial Investment must one have to start up the business? "M"
Question 1: Using Annual Worth method, what would be the company's profit?
Question 2: Using Annual Worth method, how much does the Interest of Capital costs?
Question 3: What wold be the actual Tax cost?"
Question 4: What would be the actual depreciation cost?"
Question 5: After 7 years, how much does the initial investment costs after all its' depreciation?