Question
A man wants to have a building to be used as a university, and he has two options. The first one is to build it
A man wants to have a building to be used as a university, and he has two options. The first one is to build it with a first cost of P11,906,839 and a salvage of P 450,000 at the end of 30 years. Its annual operating cost is P831,834, while the repair and maintenance cost is P967,490 for every 10 years and thereafter while the replacement cost is P 1M for every 15 years and thereafter. The second option is to rent a building with the following annual rental cost shown in the table every 5 years and thereafter. If the interest is 22% cpd. weekly, what is the Capitalized Cost of the 1st Option?
A man wants to have a building to be used as a university, and he has two options. The first one is to build it with a first cost of P11,906,839 and a salvage of P 450,000 at the end of 30 years. Its annual operating cost is P831,834, while the repair and maintenance cost is P967,490 for every 10 years and thereafter while the replacement cost is P IM for every 15 years and thereafter. The second option is to rent a building with the following annual rental cost shown in the table every 5 years and thereafter. If the interest is 22% cpd. weekly, what is the Capitalized Cost of the 1st Option? Year 1 2 3 4 5 AC 2M 3M 4M 5M 6M A man wants to have a building to be used as a university, and he has two options. The first one is to build it with a first cost of P11,906,839 and a salvage of P 450,000 at the end of 30 years. Its annual operating cost is P831,834, while the repair and maintenance cost is P967,490 for every 10 years and thereafter while the replacement cost is P IM for every 15 years and thereafter. The second option is to rent a building with the following annual rental cost shown in the table every 5 years and thereafter. If the interest is 22% cpd. weekly, what is the Capitalized Cost of the 1st Option? Year 1 2 3 4 5 AC 2M 3M 4M 5M 6MStep by Step Solution
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