A constructed bridge requires no upkeep until the end of 2 years when P60,000 will be needed for repairs. After this P90,000 will be needed for repairs at the end of each year for the next 5 years, then P190,600 at the end of each  year for the next 5 years. If money is worth 13% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Show complete solution and formula used. Provide cash flow diagram. Write the solution in a paper. Thank you!

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A constructed bridge requires no upkeep until the end of 2 years when P60,000 will be needed for repairs. After this P90,000 will be needed for repairs at the end of each year for the next 5 years, then P190,600 at the end of each  year for the next 5 years. If money is worth 13% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Show complete solution and formula used. Provide cash flow diagram. Write the solution in a paper. Thank you!

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