9. A plastic manufacturing company in Laguna installed a new boiler at a total cost of P600,000.00 and is estimated to have a useful life of 10 years. It is estimated to have a scrap value at the end...

The capitalized cost of a new printing equipment was found to be P426,000.00. The rate of interest was 12%, with a salvage value of P30,000.00 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. Answer. P266,062.26

Extracted text: 9. A plastic manufacturing company in Laguna installed a new boiler at a total cost of P600,000.00 and is estimated to have a useful life of 10 years. It is estimated to have a scrap value at the end of its useful life of P20,000.00. If interest is 12% compounded annually, determine its capitalized cost. Answer. P875,423.48