It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $1,000. Assuming an interest rate of 4% year compounded daily, determine the capitalized cost for maintaining the statue.
First of all we need to calculate effective annual interest rate by the following formula:
r= 4.081%
Annual maintenance cost= $ 1000
Capitalised value of the property = $1000/0.04081
=$24503
It is estimated that the annual maintenance cost of a statue erected in front of a...
ASSIGNMENT 1. Determine the capitalized cost of an equipment costing P2M with and annual maintenance of P200,000.00 if money is worth 20% per annum. 2. A dam will have a first cost of $5,000,000 an annual maintenance cost of $25,000 and minor reconstruction costs of $100,000 every five years. At an interest rate of 8% per year, the capitalized cost of the dam is? 3. A P100,000, 6% bond, pays dividend semi-annually and will be redeemed at 110% on July...
9. A bridge is being considered at a cost of $220 million. The annual maintenance cost are estimated to be SISOK. A major renovation costing SS0 million is required every 25 years. What is the capitalized cost of the bridge at 5% interest;
Chattanooga is constructing a park at in investment of $1,000,000. Annual maintenance cost are expected to be $10,000 for the first 30 years and $20,000 thereafter for an indefinite period of time. With an interest rate of 6%, what is the capitalized cost of this project? Ans. $xxxxxxx
4-54 It is estimated that the maintenance cost on a new car will be $500 the first year. Each subsequent year, this cost is expected to increase by $150. How much would you need to set aside when you bought a new car to pay all future maintenance costs if you planned to keep the vehicle for 10 years? Assume interest is 5% per year.
Team Exercise 5-4: The new Physics & Astronomy and Interdisciplinary Science Building (PAÍS) cost $35M to build. It annual O&M budget is $2.75M. PAÍS' useful life is estimated at 45 year. What is the building's capitalized cost and annualized capital cost if UNM uses an 18% internal interest rate?
show your work 11) A pump has an initial cost of $20,000 and an annual maintenance cost of $550. The life of the pump is 15 years, and its salvage value is $4500. Assuming an annual effective interest rate of 4%, the equivalent uniform annual cost of the pump is most nearly? a. $1020 b. $1470 c. $2120 d. $2570
7. A proposed bridge on the interstate highway system is being considered at the cost of $2 millin It is pring 2019 expected that the bridge will last 20 years. The federal and state governments will pay these construction costs. Operation and maintenance costs are estimated to be $180,000 per year. Benefits to the public are estimated to be $900,000 per year. The building of the bridge will result in an estimated cost of $250,000 per year to the general...
UESTION 1 Beach Front Foods Inc. has decided to add a delivery service to its business. At the beginning of 2020 the company purchased a car to use to deliver customer orders. The purchase price of the car included non-refundable taxes. The car was painted with the store logo and they had to purchase the annual license fee. During the year they purchased gas to run the car and paid maintenance costs. 42,000 5,800 Purchase price of car Non-refundable taxes...
5) (17 points) Maintenance costs for a bridge are cyclic with the following costs occurring over a 5-year period. MARR is 10% per year compounded annually. EOY 2 3 5 Maintenance S50 million $75 million $75 million $75 million $150 million Cost 1 4 a) (14 points) Compute an equivalent uniform annual cost over a single 5-year maintenance cycle. b) (3 points) It is anticipated that the sequence of costs will repeat every 5 years forever. If so, determine the...
(NOTE: ENTER YOUR ANSWER ROUNDED TO TWO DECIMAL PLACES, for instance as 2.56, not as 2.564321. Include negative sign in front of your answer if negative. Do not round intermediate calculations!) A public project consisting of a construction of an outdoor public ice rink in a public park is being considered. The project would require an initial construction cost of $1.5 million and subsequent maintenance with an estimated annual cost of $69000. The project is assumed to last 19 years....