Question: A manufacturing process can be carried out by using a machine which can be acquired for P20,000. The annual receipts generated by the investment is

  1. A manufacturing process can be carried out by using a machine which can be acquired for P20,000. The annual receipts generated by the investment is P150,000 and the annual disbursement is P138,000. The asset will have a life of 10 years in which it will have a salvage value of P2,000 at the end of its life. MARR = 20% Is the project acceptable using the AW method?

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