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- What is the capitalized cost of a structure that will require construction costof P1,000,000 immediately and P800,00 each year for the next 4 yearsand annual year –end maintenance of P36,000 plus the expenditure ofP200,000 an the end of each 10-year period for replacement? Assume12% interest rate.A bridge that was constructed at a cost of P 75,000 is expected to last 30 years, at the end of which time its renewal cost will be P 40,000. Annual repairs and maintenance are P 3,000. What is the capitalized cost of the bridge at an interest of 6%? 133,433.00 50,000.00 125,000.00 140,625.00 75,948.67 58,433.0012. Determine the capitalized cost of the building that is worth P50M, with maintenance cost of P15,000.00 per year for the first 5 years, P20,000.00 per year thereafter and P50,000.00 repair every 5 years if money is worth 8%
- 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%4. Determine the capitalized cost of a research laboratory that requires P5M for original construction; P100,000 at the end of every year for the first 6 years and then P120,000 each year thereafter for operating expenses, and P500,000 every 5 years for replacement of equipment with interest at 12% per annum? 5. A machine cost P8000 and an estimated life of 10 years with a salvage value of P500. What is its book value and total depreciation after 8 years using the straight line method? i 6. An engineer bought an equipment for P500,000. He spent an additional amount of P30000 for installation and other expenses. The salvage value is 10% of the first cost. If the book value at the end of 5 years will be P291,500 using the straight line method of depreciation, compute the useful life of the equipment in years.A research laboratory which requires P5M for original construction; P100k at the end of every year for the first 6 years and then P120T each year thereafter for operating expenses, and P500k every 5 years for replacement of equipment with interest at 12% per annum. What is the cost of perpetual operation? a. P917,771.854 b. P471,936.467 c. P971,936.854 d. P1,411.140.732
- 1. Determine the capitalized cost of a small public market if the structure has a first cost of P20M, a life of 20 years and a salvage value of P750,000. The annual operating cost is P150,000. Taxes to be paid is P70,000 annually. Use an interest rate of 7.5%. 2. The maintenance cost of equipment is P15,000 per year and its capitalized cost at 6% interest is P1.8M. IF the equipment has a salvage value of P30,000 and has to be renewed at cost after 10 years, find its original cost. 3. A company uses a type of truck that costs P2M, with a life of three years and a final salvage value of P320,000. How much could the company afford to pay for another type of truck for the same purpose, whose life is four years with a final salvage value of P400,000, if money is worth 4%?Establishment of a new lab requires an initial investment of $240,000 and annual costs of $85,000 for ever. What is the capitalized cost of this lab investment given an annual interest rate of 4%? OA. $2,365,000 OB. $2,134,600 OC. $2,125,000 OD. $2,322,925 OE. $1,885,000 GEECH4. A bridge that was constructed at a cost of P75,000,000 is expected to last 30 years, at the end of which time its renewal cost will be P40,000,000. Annual repairs and maintenance are P3,000,000. What is the capitalized cost of the bridge at an interest of 6%? Capitalized Cost = First cost + Q + X Q = PW (P/A, i, k) X = (1+ i)k – 1
- Capitalized cost is an application of perpetuity. It is the sum of the first cost and the present worth of all future payments and replacements. A machine costs P300,000 new, and must be replaced at the end of each 15 years. If the annual maintenance required is P5,000, find the capitalized cost, if money is worth 5% and the salvage value is P50,000. First Cost 300000 Present worth of the annual maintenance cost *Letters only Perpetuity of the depreciation cost Capitalized cost a. 178,700 b. 231,700 c. 321,500 d. 400,500 e. 127,700 a. 372,700 b. 441,700 c. 529,500 d. 609,500 e. 631,700V5. Determine the capitalized cost for an asphalt road that will require a construction cost of P10M, P50 000.00 each year-end for maintenance, plus an expenditure of P1M every four years for repayment. Money is worth 5% effective. (ANSWER:. P15,640,236.65) PLEASE USE AN ACTUAL FORMULA NOT EXCELX will pay $80,000 for a project that will generate the following cash flows: YEAR 1 2 3 4 5 7 8 CASH FLOW $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $30,000 $30,000 The payback period for the investment is: O 7 years O 6.25 years O 7 years O 7.33 years
