An investment of P 275000 in a new machine could reduce the annual cost of operations by
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Question:
An investment of P 275000 in a new machine could reduce the annual cost of operations by P 80000. It would cost P 12000 per year to maintain the machine which would last for 10 years with neglible scrap value. A constant annual deposit in a fund is made at an interest of 8% per annum to accumulate and receive the first cost of the machine in 10 years.
Find the rate of return on the investment in percent.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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