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6%, what is the capitalized cost of the house? e of your complete solution including the correct CASH FLOW DIAC

6%, what is the capitalized cost of the house? e of your complete solution including the correct CASH FLOW DIAC

Essentials Of Investments
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
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Solve the following problems. You must show all your solutions -Draw the cash flow diagram for each problem -use interest rate with five decimal places. -Box your final answer and upload the picture of your complete solution.

A man planned of building a house. The cost of construction is P 500,000, while annual maintenance cost is estimated at P 10,000. If the interest rate is 6%, what is the capitalized cost of the house? (Upload the picture of your complete solution including the correct CASH FLOW DIAGRAM) P 666,667 B) P 642,857 P 692,852 D) P686,667
Transcribed Image Text:A man planned of building a house. The cost of construction is P 500,000, while annual maintenance cost is estimated at P 10,000. If the interest rate is 6%, what is the capitalized cost of the house? (Upload the picture of your complete solution including the correct CASH FLOW DIAGRAM) P 666,667 B) P 642,857 P 692,852 D) P686,667
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