The first cost of a permanent project is $5,000,000, the annual
operating cost is $300,000 per...
The first cost of a permanent project is $5,000,000, the annual
operating cost is $300,000 per year and the salvage value is
$2,000,000. Calculate the annual worth of this project at an annual
interest rate of: 10% per year. no time given
a. 600,000 b. 700,000 c. 800,000 d. 900,000
A project has an initial cost of $150,000. The annual operating
cost is $8000 for the...
A project has an initial cost of $150,000. The annual operating
cost is $8000 for the first 10 years and $5000 thereafter. There is
a recurring $15000 maintenance cost each 15 years. The equation
that represents the capitalized cost of this project at i=10%
is:
Group of answer choices
CW(10%)=150,000+8,000(P/A, 10%, 10)+(5000/0.1)(P/F, 10%,
11)+(15000(A/F, 10%, 15))/0.1
CW(10%)=150,000+8,000(P/A, 10%, 10)+(5000/0.1)(P/F, 10%,
10)+(15000(A/F, 10%, 15))/0.1
CW(10%)=150,000+8,000(P/A, 10%, 10)+(5000/0.1)(P/F, 10%,
11)+15000(A/F, 10%, 15)
CW(10%)=150,000+8,000(P/A, 10%, 10)+(5000/0.1)(P/F, 10%,
9)+(15000(A/F, 10%, 15))/0.1
A computer platform requires $150,000 initial investment and
additional $100,000 after 10 years. The annual software...
A computer platform requires $150,000 initial investment and
additional $100,000 after 10 years. The annual software maintenance
costs are $6,000 for the first 4 years and $13,000 thereafter. In
addition, there is expected to be a recurring major upgrade cost of
19,000 every 13 years. Assuming 5% interest rate, calculate the
capitalized value of the project's costs
Conduct a Benefits-Cost Analysis on the following Highway
Project using:
Initial Costs of Tunnel $5,000,000
Annual...
Conduct a Benefits-Cost Analysis on the following Highway
Project using:
Initial Costs of Tunnel $5,000,000
Annual costs for operating/maintenance 150,000
Annual savings and benefits to travelers 250,000
Residual value of benefits after horizon 350,000
Useful life of investment 30 years
Interest Rate 6%
a. B-C Ratio of Annual Worth
b. B-C Ratio of Future Worth
c. B-C Ratio of Present Worth
1.
Determine the capitalized cost of a small public market if the
structure has a first...
1.
Determine the capitalized cost of a small public market if the
structure has a first cost of P20M, a life of 20 years and a
salvage value of P750,000. The annual operating cost is P150,000.
Taxes to be paid is P70,000 annually. Use an interest rate of
7.5%.
2.
The maintenance cost of equipment is P15,000 per year and its
capitalized cost at 6% interest is P1.8M. IF the equipment has a
salvage value of P30,000 and has to...
1. A new bridge with a 100-year life is expected to have an
initial cost of...
1. A new bridge with a 100-year life is expected to have an
initial cost of Birr 20 million. This bridge must be resurfaced
every five years, at a cost of Birr 1 million. The annual
inspection and operating costs are estimated to be Birr 50 000.
Determine the present-worth cost of the bridge using the
capitalized equivalent approach (i.e., take the life of the bridge
as infinite). The interest rate is 10% per year, compounded
annually.
A machine costs $750,000 to purchase and will produce $250,000
per year revenue. Annual operating and...
A machine costs $750,000 to purchase and will produce $250,000
per year revenue. Annual operating and maintenance cost is $70,000.
The machine will have to be upgraded in year 4 at a cost of
$150,000. The company plans to use the machine for 8 years and then
sell it for scrap for which it expects to receive $30,000. The
company MARR interest rate is 10%. Compute the net present worth to
determine whether or not the machine should be purchased?
A certain machine has the estimates shown below:
Machine
First
Cost ($)
-20,000
Annual
operating cost...
A certain machine has the estimates shown below:
Machine
First
Cost ($)
-20,000
Annual
operating cost ($/ year)
-10,000
Salvage
value ($)
4,000
Life
(years)
10
At an interest rate of 10% per year, the annual worth of this
machine is equal to:
Question 10 options:
-$13,004
-$13,254
-$12,658
-$15,270