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The capitalized cost was computed to be P2 million. The structure includes some additional expenses of P100,000 at the beginning of the year for the
The capitalized cost was computed to be P2 million. The structure includes some additional expenses of P100,000 at the beginning of the year for the next 15 years, a renewal cost of P200,000 would occur in which the expected life of the structure is 5 years. Another cost to consider starting at the end of the tenth year for 20 years is expected amounting to P10,000. If the interest rate is 9% per year, determine the perpetual maintenance of this structure.
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