! Show Full Solution ! construction. It was also determined that the dam will require Php2000000 maintenance andoperating expenses every year and an additional cost of Php 16000000 of major repairs every 10years. What will be the capitalized cost of all these expenses if money is worth 7% per year?3. Determine the capitalized cost of a research laboratory which requires P5000000 for originalconstruction; P100000 at the cost of every year for the first 6 years and then P120000 each yearhereafter for operating expenses and P500000 every 5 years for replacement of equipment withinterest at 12% per annum.

Original Construction Cost =P5,000,000 Annual Operating Cost from year 1 to 5 = P100,000 Annual…

Answered: Determine the capitalized cost of a…

Determine the capitalized cost of a resear construction; P100000 at the cost of every y hereafter for operating expenses and P5000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EA: Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and...

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! Show Full Solution !

construction. It was also determined that the dam will require Php2000000 maintenance and
operating expenses every year and an additional cost of Php 16000000 of major repairs every 10
years. What will be the capitalized cost of all these expenses if money is worth 7% per year?
3. Determine the capitalized cost of a research laboratory which requires P5000000 for original
construction; P100000 at the cost of every year for the first 6 years and then P120000 each year
hereafter for operating expenses and P500000 every 5 years for replacement of equipment with
interest at 12% per annum.

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