Question

Determine the capitalized cost of a structure that requires an initial investment of P3,000,000 and an
annual maintenance of P500,000. Interest is 18%.

Answer 1

$C_c=F_c+P_{o,m}$

$F_c= initial \space investment$

and

$p_{o,m}=A/i$

$=2777777.778$

$C_c=3000000+=2777777.778$

$C_c=5777777.7789\space answer$