5,000 is expected to last 30 years, at the end of which time its renewal cost will be P 40,000. Annual repairs and
5,000 is expected to last 30 years, at the end of which time its renewal cost will be P 40,000. Annual repairs and
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A bridge that was constructed at a cost of P 75,000 is expected to last 30 years, at the end of which time its renewal cost will be P 40,000. Annual repairs and maintenance are P 3,000. What is the capitalized cost of the bridge at an interest of 6%?
133,433.00
50,000.00
125,000.00
140,625.00
75,948.67
58,433.00
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