The capitalized cost of a piece of equipment was found to be P145,000.00. The rate of interest
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The capitalized cost of a piece of equipment was found to be P145,000.00. The rate of interest used in the computations was 10%, with a salvage value of $10,000.00 at the end of service life of 8 years. Assuming that the cost of perpetual replacement remains constant. Determine the original cost of the equipment
A.P82,021.50
B. P68,021.50
C. P78,021.50
D. P92,021.50
Expert Answer:
Annual worth Capitalized cost Annual worth Capitalized cost xi Annual worth P142000 x ... View the full answer
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