apitalized cost of an asse

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 1P
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Capitalized Cost

1.Find the capitalized cost of an asset whose cost is P100,000, salvage value is P10,000, life is 15 years at 5%.

2.A bridge that was constructed at a cost of P75,000 is expected to last 30 years, at the end of which time its renewal cost will be P40,000. Annual repairs and maintenance are P3,000. What is the capitalized cost of the bridge at an interest of 6%?

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