Question
The Governor of the Santana province evaluates the development of a recreational park for its inhabitants, whose initial cost is $ 35,000. Additionally it will
The Governor of the Santana province evaluates the development of a recreational park for its inhabitants, whose initial cost is $ 35,000. Additionally it will be necessary to add new game artifacts every year for the next five years at a cost of $ 6,000 annually. The annual operating costs of the complex are estimated at $ 12,000 for the first year, with an increase of 10% per year until year 5. Starting from year 6, operating expenses They will remain at $ 10,000 annually. Additionally, every 7 years they must carry out a general repair at a cost of $ 5,000; This repair must be carried out until year 28. In order to meet initial investment expenses and operating costs, will charge for attendance at the complex. This is how income is estimated at $ 8,000 the first year, $ 10,000 the second and successive increases of $ 2,000 annually through year 8; from year 9 net income is estimated at $ 24,000 each year. Determine the capitalized cost of recreational park, considering an indefinite useful life and an interest rate of 10% capitalizable annually..
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