the capiladliz propert which requires P8,000,000.00 for original constructions; P150,000.00 at end of every year for 5 years and then P180,000.00 each year thereafter for operating expenses, and P600,000.00 every 6 years for replacement of equipment with interest at 15% per

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 2E
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1. Determine the capitalized cost of a property
which requires P8,000,000.00 for original
constructions; P150,000.00 at end of every
year for 5 years and then P180,000.00 each
year thereafter for operating expenses, and
P600,000.00 every 6 years for replacement
of equipment with interest at 15% per
annum.
Transcribed Image Text:1. Determine the capitalized cost of a property which requires P8,000,000.00 for original constructions; P150,000.00 at end of every year for 5 years and then P180,000.00 each year thereafter for operating expenses, and P600,000.00 every 6 years for replacement of equipment with interest at 15% per annum.
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