Engineering Fundamentals
Engineering Fundamentals
6th Edition
ISBN: 9780357112144
Author: Saeed Moaveni
Publisher: MISC PUBS
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Chapter 20, Problem 19P
To determine

Find the project that would be approved if each project generates the same income.

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Attach a complete solution. Draw the cash flow diagram.Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional cost of P250,000 at the end of every 8 years. The annual operating costs will be P150,000 at the end of every year for the first 5 years and P200,000 thereafter. In addition there is expected to be recurring major rework cost of P500,000 every 13 years. Assume i=12%
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