3. A company bought a new equipment costing P520,000 which will have a life of 10 years. Salvage value of the equipment at the end of its expected life is P10,000. If rate of return is 6% per annum, compute the capitalized cost.
3. A company bought a new equipment costing P520,000 which will have a life of 10 years. Salvage value of the equipment at the end of its expected life is P10,000. If rate of return is 6% per annum, compute the capitalized cost.
Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter9: Pricing Construction Equipment
Section: Chapter Questions
Problem 6RQ
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![[10 minutes]
3. A company bought a new equipment costing
P520,000 which will have a life of 10 years.
Salvage value of the equipment at the end of its
expected life is P10,000. If rate of return is 6%
per annum, compute the capitalized cost.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F749fb963-3c2b-493f-ade8-7219fe72fe28%2Fabc1c791-fa4b-4f68-bc67-fd29cfe72044%2Fjh14wpb6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[10 minutes]
3. A company bought a new equipment costing
P520,000 which will have a life of 10 years.
Salvage value of the equipment at the end of its
expected life is P10,000. If rate of return is 6%
per annum, compute the capitalized cost.
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