An equipment was purchased now at P10,000,000.00 prevailing interest rate is 10% per year. Solve the following cases capitalized cost: Solve for case 1 if the projected maintenance cost will total P5,000,000.00 for 10 years. Use 10% as worth of money or interest rate.

An equipment was purchased now at P10,000,000.00 prevailing interest rate is 10% per year. Solve the following cases capitalized cost: Solve for case 1 if the projected maintenance cost will total P5,000,000.00 for 10 years. Use 10% as worth of money or interest rate.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An equipment was purchased now at P10,000,000.00 prevailing interest rate is 10% per year. Solve the following cases capitalized cost:

Solve for case 1 if the projected maintenance cost will total P5,000,000.00 for 10 years. Use 10% as worth of money or interest rate.
Solve for case 2 if the machine on item 1.1 is to be replaced every end of 10 years at 10% worth of money. Salvage cost is zero.
Solve for case 3 using the above value on case 1 and 2 at 10%

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