A factory installed a machine it is expected that there is no maintenance expenses until at the end of 11 years when P200.00 will be spent at the end of each successive year until it become scrap at the age of 25 years. What sum of money set aside at his time at 4% interest will take care of all maintenance expenses for the boiler? O a. P3,124.42 O b. P3,142.42 O c. P3,214.42 O d. P3,412.42

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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A factory installed a machine it is expected that there is no maintenance expenses until at the end of 11
years when P200.00 will be spent at the end of each successive year until it become scrap at the age of
25 years. What sum of money set aside at his time at 4% interest will take care of all maintenance
expenses for the boiler?
O a. P3,124.42
O b. P3,142.42
O c. P3,214.42
O d. P3,412.42
Transcribed Image Text:A factory installed a machine it is expected that there is no maintenance expenses until at the end of 11 years when P200.00 will be spent at the end of each successive year until it become scrap at the age of 25 years. What sum of money set aside at his time at 4% interest will take care of all maintenance expenses for the boiler? O a. P3,124.42 O b. P3,142.42 O c. P3,214.42 O d. P3,412.42
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