RGD Company has an initial capital of PHP 30,000,000. Production is expected to increase by 15% each year. In year 0, the company produced 50,000 units at a cost of PHP 850 per unit and sold each unit for PHP 1,100, incurring a loss of PHP 30,000,000. In year 1, production increased to 57,000 units but the company continued to lose money. By year 5, production is expected to reach 85,000 units and the company is projected to earn a net income of PHP 50,267,500.
RGD Company has an initial capital of PHP 30,000,000. Production is expected to increase by 15% each year. In year 0, the company produced 50,000 units at a cost of PHP 850 per unit and sold each unit for PHP 1,100, incurring a loss of PHP 30,000,000. In year 1, production increased to 57,000 units but the company continued to lose money. By year 5, production is expected to reach 85,000 units and the company is projected to earn a net income of PHP 50,267,500.
RGD Company has an initial capital of PHP 30,000,000. Production is expected to increase by 15% each year. In year 0, the company produced 50,000 units at a cost of PHP 850 per unit and sold each unit for PHP 1,100, incurring a loss of PHP 30,000,000. In year 1, production increased to 57,000 units but the company continued to lose money. By year 5, production is expected to reach 85,000 units and the company is projected to earn a net income of PHP 50,267,500.
Net Income PHP (30,000,000.00) PHP (17,875,000.00) PHP (4,052,500.00)
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