5. Determine the capitalized cost of an expenditure of P 200,000 at time 0, P 25,000 in years 2 through 5, and P 40,000 per year from year 6 onward. Use an interest rate of 12% per year. ANS. P 456,940.26 i= 12% per year

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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5. Determine the capitalized cost of an expenditure of P 200,000 at time 0, P 25,000
in years 2 through 5, and P 40,000 per year from year 6 onward. Use an interest
rate of 12% per year.
ANS. P 456,940.26
i = 12% per year
1
3
6
7
8
25,000
2 00,000
40,000
P= CC = ?
Transcribed Image Text:5. Determine the capitalized cost of an expenditure of P 200,000 at time 0, P 25,000 in years 2 through 5, and P 40,000 per year from year 6 onward. Use an interest rate of 12% per year. ANS. P 456,940.26 i = 12% per year 1 3 6 7 8 25,000 2 00,000 40,000 P= CC = ?
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