Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 27P
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A constructed bridge requires no upkeep until the end of 2 years when P60,000 will be needed for repairs. After this P90,000 will be needed for repairs at the end of each year for the next 5 years, then P110, 900 at the end of each year for the next 5 years. If money is worth 13% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include cashflow diagram.
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