A machine was purchased with an amount of P375,000.00 and a modification cost of P100,000.00 after 12 years. It needs regular maintenance that cost P15,850.00 per year. A software renewal cost of P7,287.00 every two years. What is the total capitalized cost that needs to prepare for the acquisition of this asset in pesos given that the interest rate is 0.09 annually?   complete solution of capitalized cost please not in excel

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 13P
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A machine was purchased with an amount of P375,000.00 and a modification cost of P100,000.00 after 12 years. It needs regular maintenance that cost P15,850.00 per year. A software renewal cost of P7,287.00 every two years. What is the total capitalized cost that needs to prepare for the acquisition of this asset in pesos given that the interest rate is 0.09 annually?

 

complete solution of capitalized cost please not in excel 

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