A concrete pavement on a street would cost P2M and would last for 5 years. Minor maintenance cost is P 50,000 per year. At the end of each 5 years, P 100,000 would be spent to remove the old surface before P 1M is spent again to lay a new surface. Find the capitalized cost of the pavement at 6%.   I'm confused about how to solve this one. Can you provide me with a written solution instead of an excel one? Thank you.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.