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What is the capitalized cost of a structure

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What is the capitalized cost of a structure that will require construction cost of P1,000,000 immediately and P80,000 each year for the next four years and annual year-end maintenance of P36,000 plus the expenditure of P200,000 at the end of each 10-year period for replacement? The local government appropriated an amount of P3M in its budget for this purpose. Was the appropriation sufficient? If yes, determine the excess amount, otherwise solve for the additional amount to be raised for the construction of the aid structure. Assume a 12% interest rate.

Reference no: EM133064110

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