A machine cost P1,500,000 and will have a scrap value of P150,000 when retired at the end of 15 years. If money is worth 4.8%, find the annual investment and the capitalized cost of the machine.

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
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Engineering economics

CAPITALIZED COST, INFLATION AND REPLACEMENT STUDIES

3. A machine cost P1,500,000 and will
have a scrap value of P150,000 when
retired at the end of 15 years. If money
is worth 4.8%, find the annual
investment and the capitalized cost of
the machine.
Transcribed Image Text:3. A machine cost P1,500,000 and will have a scrap value of P150,000 when retired at the end of 15 years. If money is worth 4.8%, find the annual investment and the capitalized cost of the machine.
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