Answered: nd Php 1,500 per year thereafter. Php…

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nd Php 1,500 per year thereafter. Php 5,000 repair every 6 years and replaced every 12 ye

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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Question

Determine
the capitalized cost of a personal computer that worth Php 50,000 with a
salvage value of P 10,000, with maintenance cost of Php 1,000 per year for the
first 3 years,P 1200 for the next 3 years and Php 1,500 per year thereafter. Php
5,000 repair every 6 years and replaced every 12 years, if money worth 10%.

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