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The capitalized cost of a piece of equipment was found to be P142,000. The rate of interest used in the computations was 12%, with a salvage value of P10,000 at the end of a service life of 8 years. Assuming that the cost of perpetual replacement remains constant, determine the original cost of the equipment.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M939087

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