The engineering team at Manuel's Manufacturing. Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs P380,000 initially and is expected to increase revenue P125,000 per year every year. Th software and installation from Vendor B costs P280,000 and is expected to increase revenue P95,000 per year. Manuels uses a 4-yeat planning horizon and a 10.5% per year MARR. What is the present worth of investment from Vendor B (rounded to the nearest peso)? A P21,137 B P15,742 P22,507 D P17,485
The engineering team at Manuel's Manufacturing. Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs P380,000 initially and is expected to increase revenue P125,000 per year every year. Th software and installation from Vendor B costs P280,000 and is expected to increase revenue P95,000 per year. Manuels uses a 4-yeat planning horizon and a 10.5% per year MARR. What is the present worth of investment from Vendor B (rounded to the nearest peso)? A P21,137 B P15,742 P22,507 D P17,485
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 10P
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![The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The
software and installation from Vendor A costs P380,000 initially and is expected to increase revenue P125,000 per year every year. The
software and installation from Vendor B costs P280,000 and is expected to increase revenue P95,000 per year. Manuel's uses a 4-year
planning horizon and a 10.5% per year MARR. What is the present worth of investment from Vendor B (rounded to the nearest peso)?
A) P21,137
B) P15,742
c) P22,507
D) P17,485](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3967c03c-2a06-4d01-93a7-f19a3acf9b72%2F72e50fcf-e08c-465e-87ef-b4f4103ef4dc%2Fj31ya7_processed.png&w=3840&q=75)
Transcribed Image Text:The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The
software and installation from Vendor A costs P380,000 initially and is expected to increase revenue P125,000 per year every year. The
software and installation from Vendor B costs P280,000 and is expected to increase revenue P95,000 per year. Manuel's uses a 4-year
planning horizon and a 10.5% per year MARR. What is the present worth of investment from Vendor B (rounded to the nearest peso)?
A) P21,137
B) P15,742
c) P22,507
D) P17,485
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