ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
A bridge that was constructed at a cost of P500,000 is expected to last 20 years, at the end of which time its renewal cost will be P100,000. Annual repairs and maintenance are P45,000. What is the capitalized cost of the bridge at an interest of 6%?
A. 1,295,307.60
B. 1,925,307.60
C. 2,592,307.60
D. 2,195,307.60
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