A city is spending $19.5 million on a new sewage system. The expected life of the...
A city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of its life. Operating and maintenance expenses for the system are projected to average $0.6 million per year. If the city's MARR is 8% per year, what is the capitalized worth of the system?
Compare alternatives A and B with the present worth method if the MARR is 11% per year. Which one would you recommend? Assume repeatability and a study period of 12 years. $25,000 $10,000 at end of year 1 and increasing by $1,000 per year thereafter None Capital Investment Operating Costs $55,000 $5,000 at end of year 1 and increasing by $500 per year thereafter $5,000 every 3 years 12 years $10,000 if just overhauled Overhaul Costs Life 6 years negligible...
Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost investment cost) of $140,000. Annual maintenance expenses are expected to be $6,000 for the first 25 years and $10,000 for each year thereafter. The lighting will be needed for an indefinitely long period of time. With an interest rate of 8% per year, what is the capitalized cost of this project? Click the icon to view...
Use the imputed market value technique to determine the better alternative below. The MARR is 12% per year and the study period is four years. Capital Investment, millions Annual Expenses, millions Useful Life, years Market Value (End of useful life) Alternative J 41 10 4 0 Alternative K 56 20 9 o Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The present worth of Alternative J over four...
EOY 0 1 2 3 4 5 6 96 97 98 99 100 550 550 550 1,100 1,100 1,650 1,650 2,200 2.2001 2,750 2,750 Problem 5-5 (algorithmic) What is the capitalized worth of a project that has an indefinitely long study period and dollar cash flows that repeat as diagram. The interest rate is 18% per year. Click the icon to view the diagram for cash flows. Click the icon to view the interest and annuity table for discrete compounding...
Solve for A and B, Engineering Economy please solve it right! Question Help %) Problem 6-52 (algorithmic) Compare alternatives A and B with the present worth method if the MARR is 15% per year. Which one would you recommend? Assume repeatability and a study period of 20 years. $40,000 $7,000 at end of year 1 and increasing by $700 per year thereafter $7,000 every 5 years $15,000 $14,000 at end of year 1 and increasing by $1,400 per year thereafter...
Compare alternatives A and B with the present worth method if the MARR is 10% per year. Which one would you recommend? Assume repeatability and a study period of 20 years $15,000 $45,000 Capital Investment Operating Costs $4,000 at end of year 1 and increasing by $400 per year thereafter $4,000 every 5 years 20 years $8,000 at end of year 1 and increasing by $800 per year thereafter None Overhaul Costs Life 10 years Salvage Value $8,000 if just...
West Lafayette is spending $28 million on upgrades to the existing wastewater treatment plant with the addition of tertiary UV treatment. The expected life of this new treatment phase is expected to last 60 years, and it will have a market value of $5 million at the end of its useful lifetime. Operating and maintenance expenses for the tertiary treatment system are projected to be $2.2 million per year. If the city’s MARR is 6% per year, what is the...
thats all the info that is given. Save Homework: Chapter 6 HW Score: 0 of 1 pt Problem 6-5 (algorithmic) 4 of 11 (8 complete) HW Score: 38.78%, 4.27 of 11 pts I Question Help Your company is environmentally conscious and is considering two heating options for a new research building, What you know about each option is below, and your company will use an annual interest rate (MARR) of 8% for this decision. Which is the lower cost option...
A $5,000 balance in a tax-deferred savings plan will grow to $159,602.00 in 45 years at an 8% per year interest rate. What would be the future worth if the $5,000 had been subject to a 30% income tax rate? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. The future worth would be $ (Round to the nearest dollar.)