1. An asset was purchased for P100,000 and retired at the end of 15 years with a salvage value of P4,000. The annual operating cost was P18,000. Determine the capitalized cost of the asset based on an interest rate of 8%. 2. The first cost of a certain equipment is P324,000 and salvage value of P50,000 at the end of its life of 4 years. Ifmoney is worth 6%compounded annually, find the capitalized cost.
1. An asset was purchased for P100,000 and retired at the end of 15 years with a salvage value of P4,000. The annual operating cost was P18,000. Determine the capitalized cost of the asset based on an interest rate of 8%. 2. The first cost of a certain equipment is P324,000 and salvage value of P50,000 at the end of its life of 4 years. Ifmoney is worth 6%compounded annually, find the capitalized cost.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Capitalized Cost
1. An asset was purchased for P100,000 and retired at the end of 15 years with a salvage value of P4,000. The annual operating cost was P18,000. Determine the capitalized cost of the asset based on an interest rate of 8%.
2. The first cost of a certain equipment is P324,000 and salvage value of P50,000 at the end of its life of 4 years. Ifmoney is worth 6%compounded annually, find the capitalized cost.
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