I have purchased a machine worth P1,599,270.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded q

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 30P
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what is the solution for this problem (please not on excel file) the answer should be 241,975.3826

I have purchased a machine worth P1,599,270.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?

 

I have purchased a machine worth P1,599,270.00. And it needs maintenance at the
end of every 6 months starting 5 years after its purchased date and maintenance will
be needed for the next 10 years of its useful life. The maintenance cost is equivalent
to the 2% of the total machine cost. How much money should be prepare today to
finance the requirement if the interest rate is 0.10 compounded quarterly?
241,975.3826 margin of error +/- 2
Transcribed Image Text:I have purchased a machine worth P1,599,270.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly? 241,975.3826 margin of error +/- 2
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