Homework answers / question archive / Case 1)Determine the capitalized cost of a research laboratory which requires Php 5,000,000 for original construction Php 100,000 at the end of every year for the first 6 years and then Php 120,000 each year thereafter for operating expenses, and Php 500,000 every 5 years for replacement of equipment with interest at 12% per annum

Case 1)Determine the capitalized cost of a research laboratory which requires Php 5,000,000 for original construction Php 100,000 at the end of every year for the first 6 years and then Php 120,000 each year thereafter for operating expenses, and Php 500,000 every 5 years for replacement of equipment with interest at 12% per annum

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Case 1)Determine the capitalized cost of a research laboratory which requires Php 5,000,000 for original construction Php 100,000 at the end of every year for the first 6 years and then Php 120,000 each year thereafter for operating expenses, and Php 500,000 every 5 years for replacement of equipment with interest at 12% per annum.

Case 2)A man purchased a foreclosed property for Php 425,000. In the first month that he owned the house, he spent Php 75,000 for repairs and remodelling. Immediately after the house was remodeled, he was offered Php 545,000to sell the house. After some consideration, he decided to keep the property and have it rented for Php 4,500 per month starting two months after the purchase. He collected rent for 15 months and then sold the property for Php 600,000. If the interest rate was 1.5% per month, how much extra earnings did he make or lose by not selling the house immediately after it was remodeled.