Question

The company earned a revenue of Php 70,500 at the end of the third year but...

The company earned a revenue of Php 70,500 at the end of the third year but then decreases geometrically by 15% per year through year 20. Assume that the company invested Php 150,000 before the start of the business.

a. Determine the present worth equivalent of all the revenues during this 20-year time period at an interest rate of 10% per annum. answer in 2 decimal places.

b. What will be the Future equivalent of all the revenues during this 20-year time period? Answer in 2 decimal places.

c. What is the annual worth equivalent of these revenues during the 20-year time period? Answer in 2 decimal places.

d. What is the Internal Rate of Return (In percentage) of this investment? Answer in 2 decimal places.

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Answer #1

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