A project capitalized for P50,000 invested in depreciable assets will earn a uniform annual income of P19,849 in 10 years. The costs of operation and maintenance total P9,000a year, taxes and insurance will cost 4% of the first cost each year. If the company expects its capital to earn 12% before income taxes, is the investment worthwhile? Justify you answer. 

Answer rating: 100% (QA)

Financial Breakdown Investment Cost P50000 Annual Income P19849 Operation and Maintenance Cost P9000year Tax and Insurance Cost 4 of P50000 P2000 annually Annual Profit Before Tax Calculation Annual Income P19849 Operation and Maintenance Cost P9000 ... View the full answer