1. A passenger train was bought at Php 36000000 and will incur 1500000 of annual operation and maintenance expense in the first 5 and will increase to 2500000 thereafter until it reaches its economic life of 20 years. Find the capitalized cost at i = 5 % yearly if the train will have a salvage value of Php 3000000 and would be replaced by a new one at the end of its economic life with the same maintenance and operating expenses.

1. A passenger train was bought at Php 36000000 and will incur 1500000 of annual operation and maintenance expense in the first 5 and will increase to 2500000 thereafter until it reaches its economic life of 20 years. Find the capitalized cost at i = 5 % yearly if the train will have a salvage value of Php 3000000 and would be replaced by a new one at the end of its economic life with the same maintenance and operating expenses.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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