6. Calculate the capitalized cost of a project that has an initial cost of P3, 000,000 and an additional cost of P100, 000 at the end of every 10 yrs. The annual operating costs will be P100,000 at the end of every year for the first 4 years and P16O, 000 thereafter. In addition, there is expected to be recurring major rework cost of P300, 000 every 13 yrs. Assume i =16%.

6. Calculate the capitalized cost of a project that has an initial cost of P3, 000,000 and an additional cost of P100, 000 at the end of every 10 yrs. The annual operating costs will be P100,000 at the end of every year for the first 4 years and P16O, 000 thereafter. In addition, there is expected to be recurring major rework cost of P300, 000 every 13 yrs. Assume i =16%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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