A manufacturing plant installed a new boiler at a total cost of P150,000 and is estimated to have a useful life of 10 years. It is estimated to have a scrap value at the end of the useful life P5,000. If interest is 12% compounded annually, determine its capitalized cost.

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter18: Life-cycle Costing
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A manufacturing plant installed a new boiler at a total cost of P150,000 and is estimated to have
a useful life of 10 years. It is estimated to have a scrap value at the end of the useful life P5,000.
If interest is 12% compounded annually, determine its capitalized cost.
Transcribed Image Text:A manufacturing plant installed a new boiler at a total cost of P150,000 and is estimated to have a useful life of 10 years. It is estimated to have a scrap value at the end of the useful life P5,000. If interest is 12% compounded annually, determine its capitalized cost.
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