Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an additional investment cost of Php 1,000,000 at the end of every 10 years. The annual operating cost will be Php 100,000 at the end of every year for the first four years and Php 160,000 thereafter. In addition, there is expected to be recurring major rework cost of P300,000 every 13 years. Assume i= 15%. CC = Php 5,345,234.576 CC = Php 4,546,378.987 CC = Php 5,678,435.897 CC = Php 4,281,935.961

Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an additional investment cost of Php 1,000,000 at the end of every 10 years. The annual operating cost will be Php 100,000 at the end of every year for the first four years and Php 160,000 thereafter. In addition, there is expected to be recurring major rework cost of P300,000 every 13 years. Assume i= 15%. CC = Php 5,345,234.576 CC = Php 4,546,378.987 CC = Php 5,678,435.897 CC = Php 4,281,935.961

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3E

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