5. A telephone company purchased a microwave equipment for P6 Million with a salvage value of P600,000.00 over a period of 5 years and pay lump sum of P400,000.00 for maintenance cost. Minimum attractive rate of return is 16% annually. Compute the annual cost of investment of purchasing the microwave equipment. A. P1,592,362.54 B. P1,695,452.87 C. P1,803,374.41 D. P1.346,121.25

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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5. A telephone company purchased a microwave equipment for P6 Million with a salvage value of
P600,000.00 over a period of 5 years and pay lump sum of P400,000.00 for maintenance cost. Minimum
attractive rate of return is 16% annually. Compute the annual cost of investment of purchasing the
microwave equipment.
A. P1,592,362.54
B. P1,695,452.87
C. P1,803,374.41
D. P1,346,121.25
Transcribed Image Text:5. A telephone company purchased a microwave equipment for P6 Million with a salvage value of P600,000.00 over a period of 5 years and pay lump sum of P400,000.00 for maintenance cost. Minimum attractive rate of return is 16% annually. Compute the annual cost of investment of purchasing the microwave equipment. A. P1,592,362.54 B. P1,695,452.87 C. P1,803,374.41 D. P1,346,121.25
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