3. The construction crane is badly needed by Cruz Esguerra construction for a certain project so as to shorten the time of completion of the project. The equipment cost of P1.2 M and has a life of 5 years with a salvage value of P 200, 000 at the end of its life. The machine can be bought with money borrowed at an interest rate of 20% per annum. Annual cost is P 10, 000. Determine the capitalized cost of the equipment. Draw the cashflow diagram.
3. The construction crane is badly needed by Cruz Esguerra construction for a certain project so as to shorten the time of completion of the project. The equipment cost of P1.2 M and has a life of 5 years with a salvage value of P 200, 000 at the end of its life. The machine can be bought with money borrowed at an interest rate of 20% per annum. Annual cost is P 10, 000. Determine the capitalized cost of the equipment. Draw the cashflow diagram.
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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3. The construction crane is badly needed by Cruz Esguerra construction for a certain project so as to shorten the time of completion of the project. The equipment cost of P1.2 M and has a life of 5 years with a salvage value of P 200, 000 at the end of its life. The machine can be bought with money borrowed at an interest rate of 20% per annum. Annual cost is P 10, 000. Determine the capitalized cost of the equipment. Draw the cashflow diagram.
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