IEdeas is planning to expand its operations and plans to purchase a parcel of land on which
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Question:
IEdeas is planning to expand its operations and plans to purchase a parcel of
land on which to construct a building for their review center, which they will
need
5 years hence. The current costs are: land: P2M; building: P3.5M. Since these
are not needed immediately, the company plans to defer the purchase of the land
and the construction of the building until they are needed. If the value of the land
and
the cost of the building are expected to appreciate at the rates of 10% and
8% per annum, respectively. What will be the total cost of the investment after 5
years?
a. P8,580,275.74
c. P8,363,668.27
b. P7,244,668.37
d. NOTA
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