ZuoTi.Pro
Question

A building is to be cleaned up after being contaminated with an extremely persistent microbe at...

A building is to be cleaned up after being contaminated with an extremely persistent microbe at a cost of $300,000 (consider this a time=0 expense) The 100 workers will be vaccinated initially and then 10 will be vaccinated each year for five years, each vaccination costs $65 What is the annualized cost of clean up for a 30 year project period at 3% interest?

1.

59854
2.

11300
3.

13234
4.

14798
5.

15789
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

NOTE Net Present Value of future cash flows is calculated using EXCEL FUNCTION PV(rate,nper,pmt,fv,type) where rate-3%; nper:5; pmt-650; fv:0; type:0; Here value for pmt is positive as it denotes cash outflows; type 0 because cash flows occur at the end of each year only Annuity factor is calculated using EXCEL FUNCTION PV(rate,nper,pmt,fv,type) where rate-3%; nper=30, pmt=-1; fv:0; type:0, Here, value for pmt is negative as it it denotes cash outflows; nper 30 as projects life considered for evaluation is 30 years; type 0 because cash flows occur at the end of each year 1 Annual interest rate, RATE 2 Life of the machine, NPER 3 Annual cash expenses, PMT 4 Terminal cash flow at the end, FV 5 Annual cash flow type, TYPE 6 PV of Future CFs of the machines 7 Less: Initial cash flow 8 Net Present Value of CFs (NPV) 9 Annuity factor 10 Equivalent Uniform Annual Cost (EUAC) 396 5 10 65 10x $65] S0 -O if occurs at the end of of each year; 1 occurs at the beginning of each year -PV(B1,B2,-B3,-B4,B5) [Ref: NOTE] -300000-100*65-$300,000(100 x $65)] -SUM(B6:B7) PV(B1,30,-1,O, B5) [Ref: NOTE] =B8/B9 --> Option-5

0 0
Add a comment
Know the answer?
Add Answer to:
A building is to be cleaned up after being contaminated with an extremely persistent microbe at...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Imagine you work for a real estate developer. Three years ago, the developer spent $50 million on a plot of land, which is now valued at $60 million. However, the building project has been held up in...

    Imagine you work for a real estate developer. Three years ago, the developer spent $50 million on a plot of land, which is now valued at $60 million. However, the building project has been held up in red tape until now, and the company has paid $3 million in interest on its initial loans. Three years ago they thought they could build 100 condos for a total of $30 million and sell them for a total of $100 million. Now,...

  • 7. Analysis of a replacement project At times firms will need to decide if they want...

    7. Analysis of a replacement project At times firms will need to decide if they want to continue to use their current equipment or replace the equipment with newer equipment. In this case, the company will need to perform a replacement analysis to determine which alternative is the best financial decision for the company. Consider the case of Johnson Company: The managers of Johnson Company are considering replacing an existing piece of equipment, and have collected the following information: •...

  • need part 3, 4, 6, 7 help All work must be completed using this Excel spreadsheet....

    need part 3, 4, 6, 7 help All work must be completed using this Excel spreadsheet. All journal extries, financial statements, etc. must be prepared in clean, proper form. Reference your textbook and past courses for examples or templates to mod Use the current year for dating purposes. This project is valued at 120 points. The grading rubric is available on the last sheet labeled "Grading Rubric." Information on using Excel can be found in the Excel Notes section below....

  • Use T-accounts to record the 4 months’ of transactions noted below for this new start-up company....

    Use T-accounts to record the 4 months’ of transactions noted below for this new start-up company. Record all entries affecting the income statement into “Equity” since there are no separate T-accounts set up for the individual income statement accounts. Once all transactions have been posted, populate the net ending balance for each account for the accounts listed below. Month 1 $2,000,000 sale of stock occurs with all cash received by the company. $3,000,000 bank loan received from the company’s bank...

  • I need help with Part 6 (closing journal entries) and Part 7 (post closing trial balance)...

    I need help with Part 6 (closing journal entries) and Part 7 (post closing trial balance) 3:02 PM Thu Feb 27 4796% AC 321 Intl - FA19 - Comprehensive Project Insert Draw Formulas Data Review View 8 Q o Calibri (Body) 12 B U Home B ^ A = 1 EE tx ã į 19 2 3 4 All work must be completed using this Excel spreadsheet. All journal extries, financial statements, etc. must be prepared in clean, proper form....

  • I am in desperate need of help with this project. Apparently my answers are all wrong....

    I am in desperate need of help with this project. Apparently my answers are all wrong. 3:02 PM Thu Feb 27 4796% AC 321 Intl - FA19 - Comprehensive Project Insert Draw Formulas Data Review View 8 Q o Calibri (Body) 12 B U Home B ^ A = 1 EE tx ã į 19 2 3 4 All work must be completed using this Excel spreadsheet. All journal extries, financial statements, etc. must be prepared in clean, proper form....

  • MULTIPLE-CHOICE questions E1-1.ABC Engineering use cost method to cart engineering use cost method to calculate the...

    MULTIPLE-CHOICE questions E1-1.ABC Engineering use cost method to cart engineering use cost method to calculate the stage of completion of its construction act. Total estimated contract costs of their contract are $100 million. In the first year of their contract, ABC Engineering has incurred the following costs: Cost of purchase of raw materials worth $10 million ($5 million of which are unused by the year end) 2. Payment of salaries and wages of $5 million ($1 million of accrued salaries...

  • Introduction Young School for Wee People Young School for Wee People (YSWP) had been running a...

    Introduction Young School for Wee People Young School for Wee People (YSWP) had been running a small, for-profit preschool program for young children between the ages of two and four for several decades. YSWP was one of several privately run programs in the suburban Philadelphia area. For each of the three age groups (i.e., two-, three- and four-year olds), there were two classes per day for a total of six classes in the facility each day. The classes were held...

  • A young entrepreneurial jewelry maker has a new start-up, Be Jeweled, Inc. with a calendar year...

    A young entrepreneurial jewelry maker has a new start-up, Be Jeweled, Inc. with a calendar year end of December 31, 2017. Complete the Journal Entries for all transactions listed for Be Jeweled, Inc. for the first two quarters ending June 30, 2017. Be sure to include a date for each journal entry. You do not need to provide explanations for the Journal Entries. The first Journal Entry has been done for you. Be sure to include column totals to compare...

  • 1. LL Incorporated's currently outstanding 10% coupon bonds have a yield to maturity of 13%. LL...

    1. LL Incorporated's currently outstanding 10% coupon bonds have a yield to maturity of 13%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL's after-tax cost of debt? Round your answer to two decimal places. 2. Summerdahl Resort's common stock is currently trading at $36.00 a share. The stock is expected to pay a dividend of $2.50 a share at the end...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT