EconomicsThe DPWH has two proposed operating systems to charge and track toll fees. The 1st operating system has a cost of P25M and an additional cost of P11566084 after 10 years. The annual software maintenance contract cost isP7959010 for the first 4 years and P5137999 thereafter. In addition, there is expected to be recurring major upgrade cost of P15M every 13 years. The 2nd operating system costs P20M, annual software maintenance that costsP4M, additional repair of P10M every 5 years and a recurring major upgrade cost of P50M every 11 years. If interest is 20% cpd. monthly, find the Capitalized Cost of the 1st Operating System.

1st Operating system has: Initial Cost = I = 25,000,000 Extra Cost after 10 years = E = 11,566,084…

Answered: DPWH has two propos 59010 for the first…

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Accounting

DPWH has two propos 59010 for the first 4 yea M, additional repair of P

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 14P

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