A dam project of the Philippine Government was estimated to cost Php 340000000 during its construction. It was also determined that the dam will require Php2000000 maintenance and operating expenses every year and an additional cost of Php 16000000 of major repairs every 10 years. What will be the capitalized cost of all these expenses if money is worth 7% per year?
A dam project of the Philippine Government was estimated to cost Php 340000000 during its construction. It was also determined that the dam will require Php2000000 maintenance and operating expenses every year and an additional cost of Php 16000000 of major repairs every 10 years. What will be the capitalized cost of all these expenses if money is worth 7% per year?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
! Show Full Solution !
* use Capital Cost Formula NOT EXCEL PLS
2. A dam project of the Philippine Government was estimated to cost Php 340000000 during its construction. It was also determined that the dam will require Php2000000 maintenance and operating expenses every year and an additional cost of Php 16000000 of major repairs every 10 years. What will be the capitalized cost of all these expenses if money is worth 7% per year?
Transcribed Image Text:economic life of 20 years. Find the capitalized cost at i = 5 % yearly if the train will have a salvage
value of Php 3000000 and would be replaced by a new one at the end of its economic life with the
same maintenance and operating expenses.
2. A dam project of the Philippine Government was estimated to cost Php 340000000 during its
construction. It was also determined that the dam will require Php2000000 maintenance and
operating expenses every year and an additional cost of Php 16000000 of major repairs every 10
years. What will be the capitalized cost of all these expenses if money is worth 7% per year?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education