EconomicsThe DPWH has two proposed operating systems to charge and track toll fees. The 1st operating system has a cost of P25M and an additional cost of P11566084 after 10 years. The annual software maintenance contract cost isP7959010 for the first 4 years and P5137999 thereafter. In addition, there is expected to be recurring major upgrade cost of P15M every 13 years. The 2nd operating system costs P20M, annual software maintenance that costsP4M, additional repair of P10M every 5 years and a recurring major upgrade cost of P50M every 11 years. If interest is 20% cpd. monthly, find the Capitalized Cost of the 1st Operating System.

1st Operating system has: Initial Cost = I = 25,000,000 Extra Cost after 10 years = E = 11,566,084…

Answered: DPWH has two propos 59010 for the first…

Business

Accounting

DPWH has two propos 59010 for the first 4 yea M, additional repair of P

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

Economics
The DPWH has two proposed operating systems to charge and track toll fees. The 1st operating system has a cost of P25M and an additional cost of P11566084 after 10 years. The annual software maintenance contract cost is
P7959010 for the first 4 years and P5137999 thereafter. In addition, there is expected to be recurring major upgrade cost of P15M every 13 years. The 2nd operating system costs P20M, annual software maintenance that costs
P4M, additional repair of P10M every 5 years and a recurring major upgrade cost of P50M every 11 years. If interest is 20% cpd. monthly, find the Capitalized Cost of the 1st Operating System.

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