How much is initial cost of equipment for bawdy indecent co

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Reference no: EM132817619

BAWDY INDECENT Co. acquired an oil rig for ?400,000,000. Installation and other necessary costs in bringing the equipment to its intended condition for use totaled ?80,000,000. BAWDY is required by law to dismantle the equipment and restore the site where it is installed after 20 years. The estimated decommissioning and restoration costs are ?40,000,000. The imputed rate of interest is 12%.

Problem 1: How much is the initial cost of the equipment?

a. 480,000,000

b. 440,000,000

c. 484,146,672

d. 404,146,672

Reference no: EM132817619

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