An Engineering Company is considering investing in a project. The estimated investment cost for this project amounts to Php 3,950,000. The projected maintenance costs and savings amount to Php 235,000 per year and Php 1,400,000 per year, respectively. The resale value of the project after the project's 10-year life is Php 2,350,000. Determine the following: a. Enumerate all the cash inflows in the problem. Classify the cash inflow if it is in its present value, future value, or annual value. b. Enumerate all the cash outflows in the problem. Classify the cash outflow if it is in its present value, future value, or annual value. c. If the firm’s MARR is 9% per year and we want to know the present worth of the project, write down the complete working formula (with substituted values) to solve the problem.
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An Engineering Company is considering investing in a project. The estimated investment cost for this project amounts to Php 3,950,000. The projected maintenance costs and savings amount to Php 235,000 per year and Php 1,400,000 per year, respectively. The resale value of the project after the project's 10-year life is Php 2,350,000.
Determine the following:
a. Enumerate all the cash inflows in the problem. Classify the
b. Enumerate all the cash outflows in the problem. Classify the
c. If the firm’s MARR is 9% per year and we want to know the present worth of the project, write down the complete working formula (with substituted values) to solve the problem.
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