40. A hotel curtains on it's windows including it's rods at a total cost of P500000. These curtains will be replaced every 4 years at a cost of P400000 whilts the old curtains can be sold at Php 50000 upon replacement. Find the capitalized cost of these expenses if money is worth 4% yearly. O a. P2304555.88 O b. P2690000 O c. P2700345.56 O d. P2560537.90 e. None of the above

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
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40. A hotel curtains on it's windows including it's rods at a total cost of
P500000. These curtains will be replaced every 4 years at a cost of
P400000 whilts the old curtains can be sold at Php 50000 upon
replacement. Find the capitalized cost of these expenses if money is
worth 4% yearly.
O a. P2304555.88
O b. P2690000
O c. P2700345.56
O d. P2560537.90
O e. None of the above
Transcribed Image Text:40. A hotel curtains on it's windows including it's rods at a total cost of P500000. These curtains will be replaced every 4 years at a cost of P400000 whilts the old curtains can be sold at Php 50000 upon replacement. Find the capitalized cost of these expenses if money is worth 4% yearly. O a. P2304555.88 O b. P2690000 O c. P2700345.56 O d. P2560537.90 O e. None of the above
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