A wood post initially costs P 25, 000 with an installation and miscellaneous expenses of P 7, 500 before operation. It is expected to last for twenty years with an annual maintenance of P 2, 750 and a scrap value of P 1, 500. A concrete post can be an alternative with an initial cost and other expenses before operation doubled than that

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Draw a cash-flow diagram if necessary
2) A wood post inialy costs P 25,000 ith an installation and miscellaneous expenses of
P7, 500 before operation. It is expected to last for twenty years with an annual
maintenance of P 2, 750 and a scrap value of P 1, 500. A concrete post can be an
alternative with an initial cost and other expenses before operation doubled than that
of the first cost of the wood post. However, concrete post does not need annual
maintenance and has a scrap value of P 3, 500 before replacement. If the capitalized
cost of the concrete post is 15% higher than that of the wood post, approximately how
many years will he concrete post lasts? Money is 12% compounded monthly.
Transcribed Image Text:Draw a cash-flow diagram if necessary 2) A wood post inialy costs P 25,000 ith an installation and miscellaneous expenses of P7, 500 before operation. It is expected to last for twenty years with an annual maintenance of P 2, 750 and a scrap value of P 1, 500. A concrete post can be an alternative with an initial cost and other expenses before operation doubled than that of the first cost of the wood post. However, concrete post does not need annual maintenance and has a scrap value of P 3, 500 before replacement. If the capitalized cost of the concrete post is 15% higher than that of the wood post, approximately how many years will he concrete post lasts? Money is 12% compounded monthly.
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