Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an additional cost of Php 1,000,000 at the end of every 10 yrs. The annual operating cost will be Php 100,000 at the end of every year for the first 4 years and Php 160,00 thereafter. In addition, there is expected to be recurring major rework of Php 300,000 every 13 years. Assume interest rate is 15%.
Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an additional cost of Php 1,000,000 at the end of every 10 yrs. The annual operating cost will be Php 100,000 at the end of every year for the first 4 years and Php 160,00 thereafter. In addition, there is expected to be recurring major rework of Php 300,000 every 13 years. Assume interest rate is 15%.
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 3Q
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Transcribed Image Text:Calculate the capitalized cost of a project that has an
initial cost of Php 3,000,000 and an additional cost of Php
1,000,000 at the end of every 10 yrs. The annual operating
cost will be Php 100,000 at the end of every year for the
first 4 years and Php 160,00 thereafter. In addition, there is
expected to be recurring major rework of Php 300,000 every 13
years. Assume interest rate is 15%.
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