The maintenance cost of a certain equipment is P80,000.00 per year for the first 5 years, P120,000.00 per year for the next 5 years, cost of overhaul at the end of the 5th year and the 8th year is P280,000.00. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually?
The maintenance cost of a certain equipment is P80,000.00 per year for the first 5 years, P120,000.00 per year for the next 5 years, cost of overhaul at the end of the 5th year and the 8th year is P280,000.00. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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The maintenance cost of a certain equipment is P80,000.00 per year for the first 5 years, P120,000.00 per year for the next 5 years, cost of overhaul at the end of the 5th year and the 8th year is P280,000.00. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually?
Answer. P149,403.62
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