Solution: Find the capitalized cost of a bridge whose cost is P250M and life is 20 years

At 6%, find the capitalized cost of a bridge whose cost is P250M and life is 20 years, if the bridge must be partially rebuilt at a cost of P100M at the end of each 20 years.

Find the capitalized cost of a bridge whose cost is P250M and life is 20 years

Problem Statement: CE Board November 1996

At 6%, find the capitalized cost of a bridge whose cost is P250M and life is 20 years, if the bridge must be partially rebuilt at a cost of P100M at the end of each 20 years.

  • A. P275.3M
  • B. P265.5M
  • C. P295.3M
  • D. P282.1M

Problem Answer:

The capitalized cost of a bridge whose cost is P250M and life of 20 years is P295.3M.

Solution:

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