Calculate the capitalized cost of a project with a P3,000,000 beginning an extra P850,000 investment cost at the end of every ten years. For t five years, the yearly running cost will be P100,000 at the end of each to P160,000 after that. In addition, a recurring significant rework cost c P300,000 is estimated every 13 years. Assume that i=15%.
Calculate the capitalized cost of a project with a P3,000,000 beginning an extra P850,000 investment cost at the end of every ten years. For t five years, the yearly running cost will be P100,000 at the end of each to P160,000 after that. In addition, a recurring significant rework cost c P300,000 is estimated every 13 years. Assume that i=15%.
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 1P
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