A bridge that was constructed at a cost of P 2,000,000 is expected to last 30 years with an annual maintenance cost of P 100,000. In addition, the bridge is needed to be repaired every 5 years at a cost of P 500,000. What is the capitalized cost of the bridge if the interest rate is 18% per annum? P 523,814 O P 2,957,875 P 2,875,957 O P 532,418

A bridge that was constructed at a cost of P 2,000,000 is expected to last 30 years with an annual maintenance cost of P 100,000. In addition, the bridge is needed to be repaired every 5 years at a cost of P 500,000. What is the capitalized cost of the bridge if the interest rate is 18% per annum? P 523,814 O P 2,957,875 P 2,875,957 O P 532,418

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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