Capitalized cost is an application of perpetuity. It is the sum of the first cost and the present worth of all future pa

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Capitalized Cost Is An Application Of Perpetuity It Is The Sum Of The First Cost And The Present Worth Of All Future Pa 1 (21.67 KiB) Viewed 34 times

Capitalized Cost Is An Application Of Perpetuity It Is The Sum Of The First Cost And The Present Worth Of All Future Pa 2 (16.18 KiB) Viewed 34 times

Capitalized cost is an application of perpetuity. It is the sum of the first cost and the present worth of all future payments and replacements. A machine costs P300,000 new, and must be replaced at the end of each 15 years. If the annual maintenance required is P5,000, find the capitalized cost, if money is worth 5% and the salvage value is P50,000. First Cost Present worth of the annual maintenance cost *Letters only Perpetuity of the depreciation cost Capitalized cost a. 178,700 b. 231,700 c. 321,500 d. 400,500 e. 127,700 a. 372,700 b. 441,700 c. 529,500 d. 609,500 e. 631,700

A company issued 50 bonds of P1,000 face value each, redeemable at par at the ends of 15 years to accumulate the funds required for redemption, the firm restablished a sinking fund consisting of annual deposits, the interest rate being 4%. Find the following. Redemption value *Letters only Annual deposits The principal in the fund at end of 12th year a. 2,376 b. 2,460 c. 2,497 d. 2,566 e. 2,675 a. 20,900 b. 24,290 c. 32,450 d. 37,520 e. 43,270