To maintain its newly acquired equipment, the company need P40,000 per year for the first five years and P60,000 per year for the next five years. In addition, an amount of P140,000 would also be needed at the end of the fifth and the eighth years. At 6%, what is the present worth of these costs?

To maintain its newly acquired equipment, the company need P40,000 per year for the first five years and P60,000 per year for the next five years. In addition, an amount of P140,000 would also be needed at the end of the fifth and the eighth years. At 6%, what is the present worth of these costs?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 8Q

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Question

To maintain its newly acquired equipment, the company need P40,000
per year for the first five years and P60,000 per year for the next five
years. In addition, an amount of P140,000 would also be needed at the
end of the fifth and the eighth years. At 6%, what is the present worth of
these costs?

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