18. A large telecom service provider has offered to one of its major industrial customer two alternativegroup GSM service plans P and Q. Plan P has a first cost P5,000,000, service lock-in period 10 years,zero end of service market value and net annual revenue P 1,60,000. The corresponding data forplan Q are 9,500,000, 20 years, zero market value and revenue P3,00,000. Using minimumattractive rate of return (M.A.R.R.)of 15% per year before tax, find the future worth of each of theplan and recommend the best plan.

18. A large telecom service provider has offered to one of its major industrial customer two alternative group GSM service plans P and Q. Plan P has a first cost P5,000,000, service lock-in period 10 years, zero end of service market value and net annual revenue 1,60,000. The corresponding data for plan Q are 9,500,000, 20 years, zero market value and revenue P3,00,000. Using minimum attractive rate of return (M.A.R.R.)of 15% per year before tax, find the future worth of each of the plan and recommend the best plan.

18. A large telecom service provider has offered to one of its major industrial customer two alternative group GSM service plans P and Q. Plan P has a first cost P5,000,000, service lock-in period 10 years, zero end of service market value and net annual revenue 1,60,000. The corresponding data for plan Q are 9,500,000, 20 years, zero market value and revenue P3,00,000. Using minimum attractive rate of return (M.A.R.R.)of 15% per year before tax, find the future worth of each of the plan and recommend the best plan.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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