Question

The yearly maintenance cost is 15,000 and 250,000 for repairment of road every 18 year. If...

The yearly maintenance cost is 15,000 and 250,000 for repairment of road every 18 year. If an annual interest rate of 3.5%, what is the cost for perpetual?

  1. 1.3M

  2. 1.75M

  3. 1.45M

  4. 1.33M

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer : First option is correct

Please comment if having any query.
UPVOTE, your help means a lot to me.
I really need your generous support.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The yearly maintenance cost is 15,000 and 250,000 for repairment of road every 18 year. If...
The yearly maintenance cost is 15,000 and 250,000 for repairment of road every 18 year. If an annual interest rate of 3.5%, what is the cost for perpetual? 1.3M 1.75M 1.45M 1.33M plz answer ASAP Only right answer Will be rated
A road can be paved with either asphalt or concrete. Concrete costs $15,000/km and lasts 18...
A road can be paved with either asphalt or concrete. Concrete costs $15,000/km and lasts 18 years. Assume the annual maintenance costs are $900 for concrete and $1300 for asphalt per kilometer per year. Use an interest rate of 4% per year and annual analysis to solve for the following: (a) What is the maximum cost/km that should be spent for asphalt if it lasts only 10 years? (b) Assume the asphalt road costs $7500 per kilometer. How long must...
The road to Yosemite was repaved after the recent flooding. The repaving cost $1.5 million dollars.   ...
The road to Yosemite was repaved after the recent flooding. The repaving cost $1.5 million dollars.    Major maintenance will happen after the repaving every 5 years and will cost $500,000 dollars each time. Minor maintenance happens every year after the repaving and cost 25,000 per year.   What is the capitalized cost of the road repaving and both major and minor maintenance at an interest rate of 9 percent per year compounded monthly? (show steps and calculations)
Three alternative pavement structures A, B and C are considered for a rural road. They have...
Three alternative pavement structures A, B and C are considered for a rural road. They have the following cost characteristics per lane-mile: Alter. DOT Construction cost $ Annual Maintenance cost $/yr Annual Benefits $/yr Life (yrs) A $250,000 $5,000 $320,000 9 B $400,000 $6,000 $300,000 18 C $700,000 $10,000 $380,000 25 Determine the most efficient and the most profitable alternative using the Incremental Benefit/Cost method. Given: • there is no salvage cost and • i=4% per year compounded yearly.
A park will need $5,000,000 first cost, annual maintenance and operating cost $150,000 per year and...
A park will need $5,000,000 first cost, annual maintenance and operating cost $150,000 per year and recurring cost of $300,000 every 10 years. The park is considered to have a infinite life. What is the Capitalized Cost of this park project if the annual interest rate is 10% per year.
If Fixed Cost are $15,000 and the Total Cash needed is $250,000 calculate the 1. Target...
If Fixed Cost are $15,000 and the Total Cash needed is $250,000 calculate the 1. Target Cash Balance 2. Opportunity Cost 3. Trading Cost 4. Total Cost using the Baumol Model. Interest Rate is 6.50%
Consider a proposal to replace a road/railway level crossing with a grade separation structure, estimated to...
Consider a proposal to replace a road/railway level crossing with a grade separation structure, estimated to cost $5,000,000, requiring major repair expenditure of $300,000 every 20 years, and annual maintenance of $13,000, if interest rate is assumed to be 5%. The annual costs for operation and maintenance of the crossing total $58,600, while the costs of delays to road traffic being held up by trains is estimated to be $87,250 per annum. Based on past statistics, the crossing is responsible...
A construction company is deciding whether to build a road or a building at a new...
A construction company is deciding whether to build a road or a building at a new township site. The road will cost $50 million to build in 2019 and will require a re-construction every 5 years of the road’s operation at the cost of $10 million. The annual maintenance costs of the road are $5 million per year for the first ten years of the road’s operation and $7 million per year thereafter. The building will cost $100 million to...
6. The estimated maintenance expense of a machine: YEAR | Maintenance Cost 1 |   $100 2...
6. The estimated maintenance expense of a machine: YEAR | Maintenance Cost 1 |   $100 2 |   $200 3 | $300 4 | $400 What is the equivalent uniform annual maintenance cost for this machine if 6% interest is used?
Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year one...
Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year one and increase by 3.5% each year through year five. What is the equivalent annual worth of the maintenance costs at an interest rate of 10% per year, compounded quarterly? The equivalent annual worth is $ ?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT