Calculate the capitalized cost of a project that has an initial cost of P3,500,000 and an additional investment cost of P2,000,000 at the end of every twelve years. The annual operating cost will be P80,000 at the end of every year for the first four years and P175,000 thereafter. In addition, there is expected to be a recurring major rework cost of P250,000 every 14 years. Assume i = 13%. Kindly answer this Engineering economy problem and show the cash flow diagram.
Calculate the capitalized cost of a project that has an initial cost of P3,500,000 and an additional investment cost of P2,000,000 at the end of every twelve years. The annual operating cost will be P80,000 at the end of every year for the first four years and P175,000 thereafter. In addition, there is expected to be a recurring major rework cost of P250,000 every 14 years. Assume i = 13%. Kindly answer this Engineering economy problem and show the cash flow diagram.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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Calculate the capitalized cost of a project that has an initial cost of P3,500,000 and an additional investment cost of P2,000,000 at the end of every twelve years. The annual operating cost will be P80,000 at the end of every year for the first four years and P175,000 thereafter. In addition, there is expected to be a recurring major rework cost of P250,000 every 14 years. Assume i = 13%.
Kindly answer this Engineering economy problem and show the cash flow diagram.
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