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A man wants to have a building to be used as a university, and he has two options. The first one is to build it with a first cost of P10M and a salvage of P 450,000 at the end of 30 years. Its annual operating cost is PO.5M, while the repair and maintenance cost is P1M for every 10 years and thereafter while the replacement cost is P 1M for every 15 years and thereafter. The second option is to rent a building with the following pattern of annual rental cost shown in the table every 5 years and thereafter. If the interest is 24% cpd. weekly, what is the Capitalized Cost of the 2nd Option? Year 1 2 3 4 5 Rental 4185195 4762801 5397705 5M 6M Cost

A man wants to have a building to be used as a university, and he has two options. The first one is to build it with a first cost of P10M and a salvage of P 450,000 at the end of 30 years. Its annual operating cost is PO.5M, while the repair and maintenance cost is P1M for every 10 years and thereafter while the replacement cost is P 1M for every 15 years and thereafter. The second option is to rent a building with the following pattern of annual rental cost shown in the table every 5 years and thereafter. If the interest is 24% cpd. weekly, what is the Capitalized Cost of the 2nd Option? Year 1 2 3 4 5 Rental 4185195 4762801 5397705 5M 6M Cost

Calculus: Early Transcendentals
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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A man wants to have a building to be used as a university, and he has two options. The first one is to build it with a first cost of P10M and a salvage of P 450,000 at the end of 30 years. Its annual operating cost is PO.5M, while the repair and maintenance cost is P1M for every 10 years and thereafter while the replacement cost is P 1M for every 15 years and thereafter. The second option is to rent a building with the following pattern of annual rental cost shown in the table every 5 years and thereafter. If the interest is 24% cpd. weekly, what is the Capitalized Cost of the 2nd Option? Year 1 2 3 4 5 Rental 4185195 4762801 5397705 5M 6M Cost
Transcribed Image Text:A man wants to have a building to be used as a university, and he has two options. The first one is to build it with a first cost of P10M and a salvage of P 450,000 at the end of 30 years. Its annual operating cost is PO.5M, while the repair and maintenance cost is P1M for every 10 years and thereafter while the replacement cost is P 1M for every 15 years and thereafter. The second option is to rent a building with the following pattern of annual rental cost shown in the table every 5 years and thereafter. If the interest is 24% cpd. weekly, what is the Capitalized Cost of the 2nd Option? Year 1 2 3 4 5 Rental 4185195 4762801 5397705 5M 6M Cost
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