ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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A machine was purchased with an amount of
P375,000.00 and a modification cost of P100,000.00
after 12 years. It needs regular maintenance that cost
P15,850.00 per year. A software renewal cost of
P7,433.00 every two years. What is the total
capitalized cost that needs to prepare for the
acquisition of this asset in pesos given that the
interest rate is 0.12 annually?
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Transcribed Image Text:A machine was purchased with an amount of P375,000.00 and a modification cost of P100,000.00 after 12 years. It needs regular maintenance that cost P15,850.00 per year. A software renewal cost of P7,433.00 every two years. What is the total capitalized cost that needs to prepare for the acquisition of this asset in pesos given that the interest rate is 0.12 annually?
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