DPWH has two propos 59010 for the first 4 yea M, additional repair of P

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...
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Economics
The DPWH has two proposed operating systems to charge and track toll fees. The 1st operating system has a cost of P25M and an additional cost of P11566084 after 10 years. The annual software maintenance contract cost is
P7959010 for the first 4 years and P5137999 thereafter. In addition, there is expected to be recurring major upgrade cost of P15M every 13 years. The 2nd operating system costs P20M, annual software maintenance that costs
P4M, additional repair of P10M every 5 years and a recurring major upgrade cost of P50M every 11 years. If interest is 20% cpd. monthly, find the Capitalized Cost of the 1st Operating System.
Transcribed Image Text:Economics The DPWH has two proposed operating systems to charge and track toll fees. The 1st operating system has a cost of P25M and an additional cost of P11566084 after 10 years. The annual software maintenance contract cost is P7959010 for the first 4 years and P5137999 thereafter. In addition, there is expected to be recurring major upgrade cost of P15M every 13 years. The 2nd operating system costs P20M, annual software maintenance that costs P4M, additional repair of P10M every 5 years and a recurring major upgrade cost of P50M every 11 years. If interest is 20% cpd. monthly, find the Capitalized Cost of the 1st Operating System.
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