Question: Use the PW method. il. Using agmual warth pw Hetho An investment of RM22,750 can be made in a single project that will produce a

Use the PW method. il. Using agmual warth pw Hetho An

Use the PW method.

il. Using agmual warth pw Hetho An investment of RM22,750 can be made in a single project that will produce a uniform annual revenue of RM5,310 for seven years and then have a market value of RM2, 450. Aunual expenses will be RM3,000 each year and addition investment of RV,300 in year 3.The company is willing to accept any project that will earn 8% per year or more before incomes taxes, on all invested capital. Show whether this is desirable investment by using the B-C ratio PW method. 02. (7 marks)

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