Question

13) A B C D E A public park in South Miami area needs a major maintenance every 10 years. The initial cost of the project is

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Answer #1

13) Ans: 8.13 million

Explanation:

The capitalized cost = 5 million + [5 million (A/F, 10%, 10)] / 0.10

= 5 million + [5 million (0.0627)] / 0.10

= 5 million + (0.3135 million / 0.10)

= 5 million + 3.13 million

= 8.13 million

Thus, option [A] is correct answer.

14. Ans: 3.13 million

Explanation:

The capitalized cost = [5 million (A/F, 10%, 10)] / 0.10

= [5 million (0.0627)] / 0.10

= (0.3135 million / 0.10)

= 3.13 million

Thus, option [A] is correct answer.

  

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