Question: A computer facility is requested to serve the data processing needs of a manufacturing firm. In addition, after office hours, computer time may be sold

A computer facility is requested to serve the data processing needs of a

manufacturing firm. In addition, after office hours, computer time may be sold to

outside users at a rate of P50 per hour. The computer will cost the company

P200,000 and the expected useful life is 5 years at the end of which, the facility can

be sold for P10,000. Annual revenues from this endeavor are estimated at a fixed

P200,000. Maintenance for the asset will amount to P150,000 yearly for the tapes,

diskettes and air-conditioning. Assume MARR = 25% per annum. How many after-

office hours should be used to make the proposal to be barely acceptable?

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