To maintain its newly acquired equipment, the company needs P40,000 per year for the first five years and P60,000 per year for the next five years. In addition, an amount of P140,000 would also be needed at the end of the fifth year and eighth year. At 6%, what is the present worth of these costs?

To maintain its newly acquired equipment, the company needs P40,000 per year for the first five years and P60,000 per year for the next five years. In addition, an amount of P140,000 would also be needed at the end of the fifth year and eighth year. At 6%, what is the present worth of these costs?

Name: FMathematics In The Modern WorldNote: If you have already answered the
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Description: FMathematics In The Modern WorldNote: If you have already answered the problems in this post, kindly ignore it. If not, then answer it. Thank you, Tutor!Content Covered:- Engineering Economics- Simple Interest, Compound Interest, Annuity, Financial M

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 11PROB

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Gardner Denver Company is considering the purchase of a new piece of factory equipment that will cost $420,000 and will generate $95,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further Instructions on internal rate of return in Excel, see Appendix C.
To maintain its newly acquired equipment, the company needs P40,000 every year for the first 5 years and P60,000 for the next 5 years. In addition, an amount of P140,000 would be also be needed at the end of the fifth and the eighth years. At 6%, what is the present worth of these costs?
To maintain its newly acquired equipment, the company needs 40,000.00 per year for the first 5 years and 60,000.00 per year for the next 5 years. In addition, an amount of 140,000.00 would also be needed at the end of the fifth and eight years. At 6%, what is the present worth of these costs?
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