3. An untreated electric wooden pole that will last 10 years under certain soil condition costs P20,000. If a treated pole will last for 20 years, what is the maximum justifiable amount that can be paid for the treated pole, if the maximum return on investment is 20%? Consider annual taxes and insurances amount to be 1% of first cost.

3. An untreated electric wooden pole that will last 10 years under certain soil condition costs P20,000. If a treated pole will last for 20 years, what is the maximum justifiable amount that can be paid for the treated pole, if the maximum return on investment is 20%? Consider annual taxes and insurances amount to be 1% of first cost.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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