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The data for brand-new and second-hand machines are shown below: SECOND HAND INITIAL COST (Php) ANNUAL OPERATING COST (Php) SALVAGE VALUE (Php) USEFULE LIFE

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The data for brand-new and second-hand machines are shown below: SECOND HAND INITIAL COST (Php) ANNUAL OPERATING COST (Php) SALVAGE VALUE (Php) USEFULE LIFE (yrs) 15,000 8,000 5,000 3 BRAND NEW 40,000 2,000 10,000 6 51. Calculate the capitalized cost of second-hand machine if interest is 10% per year. A. P 168,431 B. P 131,680 C. P 125,211 52. Calculate the capitalized cost of brand-new machine if interest is 8% per year. A. P 116,118 B. P 125,450 C. P 133,531 53. At what interest rate will the two options have the same capitalized cost? A. 25.36% B. 28.59% C. 13.41% D. P 135,295 D. P 145,290 D. 14.25%

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To calculate the capitalized cost of a machine we need to consider the initial cost annual operating cost salvage value and useful life of the machine ... blur-text-image

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