PROBLEM:

8 units of milling machine that costs PHP 256,695 each are bought today. They can be used for 12 years and can be sold at PHP 41,074 each at the end of their useful life. Lubrications and minor repairs are estimated to be PHP 29,327 per unit, annually. Each machine is expected to operate at an average of 2,369 hours per year at an average power consumption of 2.7 kW per unit. The effective annual interest rate is 2.5%. Assume that the distribution utility charges PHP 8/kWhr. Using captalized cost principle, determine the following.

QUESTION:

Determine the total PRESENT WORTH of ALL the costs that occur periodically (other than annually recurring cost) in the whole investment.