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 3 years, then P120,000 at the end of each year for the next 4 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 9-year period?
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 3 years, then P120,000 at the end of each year for the next 4 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 9-year period?
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section10.A: Mutually Exclusive Investments Having Unequal Lives
Problem 2P
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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 3 years, then P120,000 at the end of each year for the next 4 years. If
money is worth 14% compounded annually, what was the equivalent uniform annual
cost for the 9-year period?
Solve it using formula not with excel
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