#ENG-6203
Awesome StudentQuestion • Engineering Economincs

An initial investment of P4, 000, 000 was put up for a new business that will produce an annual revenue of P2, 500, 000 for 5 years and will have a salvage value of P400, 000 Annual expenses for its operation and maintenance will amount to P600, 000Taxes and maintenance will cost 4% of the initial cost If money is worth 12%, show by computation if this business is profitable or not using ROR Method

Answer

2458% > 20% justified