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Replacement of equipment with interest

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Reference no: EM132011967

Determine the capitalized cost of a power plant which requires PhP10,000,000 for original construction with a PhP500,000 operating expenses, an annual maintenance of PhP200,000 for the first five years and PhP250,000 thereafter, and PhP1,000,000 every 8 years for replacement of equipment with interest at 15% per year.

Reference no: EM132011967

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