A concrete pavement on a street would cost P 2M and would lasts for 5 years. Minor maintenance cost is P 50,000 per year. At the end of each 5 years, P 100,000 would be spent to remove the old surface before p 1M is spent again to lay a new surface. Find the capitalized cost of the pavement at 6%. Select one: a. P 2.162 M b. P 2.047 M c. P 2.154 M d. P 2.068 M
A concrete pavement on a street would cost P 2M and would lasts for 5 years. Minor maintenance cost is P 50,000 per year. At the end of each 5 years, P 100,000 would be spent to remove the old surface before p 1M is spent again to lay a new surface. Find the capitalized cost of the pavement at 6%. Select one: a. P 2.162 M b. P 2.047 M c. P 2.154 M d. P 2.068 M
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A concrete pavement on a street would cost P 2M and would lasts for 5 years. Minor maintenance cost is P 50,000 per year. At the end of each 5 years, P 100,000 would be spent to remove the old surface before p 1M is spent again to lay a new surface. Find the capitalized cost of the pavement at 6%.
Select one:
a. P 2.162 M
b. P 2.047 M
c. P 2.154 M
d. P 2.068 M
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