Maury is building a plant financed by its general borrowings. Eligible expenditure for the year: 1,200,000 incurred 12 months ago; 800,000 incurred 9 months ago; 600,000 incurred 3 months ago. The capitalisation rate is 6 %. Calculate the weighted average expenditure, then the borrowing costs eligible for capitalisation (cap not reached, case data).
- First expenditure
- 1,200,000
- Age of the first expenditure
- 12
- Second expenditure
- 800,000
- Age of the second expenditure
- 9
- Third expenditure
- 600,000
- Age of the third expenditure
- 3
- Capitalisation rate
- 6 %