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
Related questions
Question

Transcribed Image Text:Determine the capitalized cost of a research laboratory which requires P 5 million
for original construction; P 100,000 at the end of every year for the first 3 years
and then P 120,000 thereafter, for operating expenses and P 500,000 every year
for replacement of equipment. Money is worth 14%.
O P 6,351,009
P 6,607,837
O P 6,451,239
O P 6,782,451
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