6. A concrete pavement on a street would cost P 20,000 and would last for 5 years with negligible repairs. At the end of each 5 years, PhP 1500 would be spent to remove the old surface before P 20,000 is spent again to lay a new surface. Find the annual cost of the pavement at 5%. A. PhP 4,890.96 B. PhP 2,490.72 C. PhP 97,819.16 D. PhP 49,814.40

6. A concrete pavement on a street would cost P 20,000 and would last for 5 years with negligible repairs. At the end of each 5 years, PhP 1500 would be spent to remove the old surface before P 20,000 is spent again to lay a new surface. Find the annual cost of the pavement at 5%. A. PhP 4,890.96 B. PhP 2,490.72 C. PhP 97,819.16 D. PhP 49,814.40

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 3PROB

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