Question: What will be the equivalent uniform annual amount that will be deposited in a bank for 15 years that will be replaced the capitalized cost

 What will be the equivalent uniform annual amount that will be

What will be the equivalent uniform annual amount that will be deposited in a bank for 15 years that will be replaced the capitalized cost of a project with the following cost; The initial cost is P2,000,000 and an additional cost of P500,000 at the end of every 5 years. The annual operating costs are P100,000 at the end of every year for the first 6 years and P160,000 thereafter. In addition, there is expected to be a major repair work cost of P300,000 every 13 yrs. Assume i =15%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!