Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional cost of P250,000 at the end of every 8 years. The annual operating costs will be P150,000 at the end of every year for the first 5 years and P200,000 thereafter. In addition there is expected to be recurring major rework cost of P500,000 every 13 years. Assume i=12%
Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional cost of P250,000 at the end of every 8 years. The annual operating costs will be P150,000 at the end of every year for the first 5 years and P200,000 thereafter. In addition there is expected to be recurring major rework cost of P500,000 every 13 years. Assume i=12%
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
5th Edition
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
Section: Chapter Questions
Problem 19P
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Attach a complete solution. Draw the cash flow diagram.
Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional cost of P250,000 at the end of every 8 years. The annual operating costs will be P150,000 at the end of every year for the first 5 years and P200,000 thereafter. In addition there is expected to be recurring major rework cost of P500,000 every 13 years. Assume i=12%
![2. Attach a complete solution. Draw the cash flow diagram.
Calculate the capitalized cost of a project that has an initial cost of
P8,000,000 and an additional cost of P250,000 at the end of every 8 years.
The annual operating costs will be P150,000 at the end of every year for
the first 5 years and P200,000 thereafter. In addition there is expected to
be recurring major rework cost of P500,000 every 13 years. Assume i=12%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bbc9835-acf4-4f89-84a9-afa0ca0f9c9c%2F830233b1-2c92-4665-9e74-e76afe6f5808%2Frapoxm_processed.png&w=3840&q=75)
Transcribed Image Text:2. Attach a complete solution. Draw the cash flow diagram.
Calculate the capitalized cost of a project that has an initial cost of
P8,000,000 and an additional cost of P250,000 at the end of every 8 years.
The annual operating costs will be P150,000 at the end of every year for
the first 5 years and P200,000 thereafter. In addition there is expected to
be recurring major rework cost of P500,000 every 13 years. Assume i=12%
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