16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur cost of money is 10% pa and no other costs are to be considered. a. P126,940 b. P 131,569 c. P 126,825.03 d. P162,825.03

16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur cost of money is 10% pa and no other costs are to be considered. a. P126,940 b. P 131,569 c. P 126,825.03 d. P162,825.03

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 8Q

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