18. Determine the capitalized cost of a bridge whose cost is P200 Million and its life is 50 years, if the pridge must be partially rebuilt at a cost of P100 Million at the end of each 50 years, and an annual maintenance cost is P500,000 and it will be needed o be repair every 10 years for P2 Million. i = 6%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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18. Determine the capitalized cost of a bridge whose
cost is P200 Million and its life is 50 years, if the
bridge must be partially rebuilt at a cost of P100
Million at the end of each 50 years, and an annual
maintenance cost is P500,000 and it will be needed
to be repair every 10 years for P2 Million. i = 6%
Transcribed Image Text:18. Determine the capitalized cost of a bridge whose cost is P200 Million and its life is 50 years, if the bridge must be partially rebuilt at a cost of P100 Million at the end of each 50 years, and an annual maintenance cost is P500,000 and it will be needed to be repair every 10 years for P2 Million. i = 6%
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