Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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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