An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for repairs. After this P90, 000 will be needed for repairs at the end of each year for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period? P79,245.82 P69,245.82 P59,245.82 P49,245.82

An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for repairs. After this P90, 000 will be needed for repairs at the end of each year for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period? P79,245.82 P69,245.82 P59,245.82 P49,245.82

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 15EA: Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years....

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