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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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