An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for repairs. After this P90, 000 will be needed for repairs at the end of each year for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period? P79,245.82 P69,245.82 P59,245.82 P49,245.82
An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for repairs. After this P90, 000 will be needed for repairs at the end of each year for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period? P79,245.82 P69,245.82 P59,245.82 P49,245.82
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section10.A: Mutually Exclusive Investments Having Unequal Lives
Problem 2P
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