A tunnel to transport water through a mountain range has an expected maintenance cost of $32,000...
A tunnel to transport water through a mountain range has an expected maintenance cost of $32,000 from year 1 to year 8. Determine the approximate:
a) Present worth at year 0
b) Future worth at year 8.
Use an interest rate of 6% per year.
Homework Answers
A.
R = 6%
n = 8 years
Present worth at Year 0 = 32000*(1-1/1.06^8)/.06
Present worth at Year 0 = $198713.40
=======
B.
Future worth at the end of year 8 = 198713.40*1.06^8
Future worth at the end of year 8 = $316718.97 or $316719
Add Answer to:
A tunnel to transport
water through a mountain range has an expected maintenance cost of
$32,000...
2. Atunnel to transport water through the Lubbock mountain range initially cost $1,000,000 and has expected...
2. Atunnel to transport water through the Lubbock mountain range initially cost $1,000,000 and has expected maintenance costs that will occur in a 6-year cycle as shown. End of year: 1 Maintenance $ 35,000 35,000 The capitalized cost at 8% interest is closest to: 35,000 45,000 $5,000 35,000 45,000 45,000 60,000 60,000 a) $1,003,300: b) $1,518,400: c) $41,468.8 d) $13,018,350: e) $10, 250, 100: f) $42,500
Q2 (a) Maintenance cost for CNC Milling machine was RM 10,000 in year 1 through 3...
Q2 (a) Maintenance cost for CNC Milling machine was RM 10,000 in year 1 through 3 and RM 20,000 in year 4 through 9. Determine the present worth at an interest rate of 4.5 % per year. (20 marks) Q2 (b) Table 1 shows deposit into saving account with rate of return 8% per year. Determine the future value at year 9. (25 marks) Table 1: Deposit Money into Saving Account Information Year Deposit, RM per year 0 800 1...
The maintenance cost for the first year of owning a new car is expected to be...
The maintenance cost for the first year of owning a new car is expected to be $500. The cost will increase $50 each year for the subsequent 9 years. The interest is 8% compounded annually. What is the approximate present worth of the maintenance for the car over the full 10 years?
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...
16. A water treatment plant will last for 15 years. The cost of the water treatment...
16. A water treatment plant will last for 15 years. The cost of the water treatment process has been decreasing according to a uniform gradient. The cost in year 1 was $10,000 and in year 2 it was $9,500, with costs decreasing by $500 each year till years 15. At an interest rate of 10% per year, the present worth (in year 0) of the water treatment cost is closest to A. $52,321 B. $56,061 C. $96,136 D. $55,984 17....
uestion 8 10 points The maintenance costs of a piece of equipment are expected to be...
uestion 8 10 points The maintenance costs of a piece of equipment are expected to be S1 500 at the end of the first year and expected to increase by $125 each year through year seven Assuming an interest rate of 10% Match the following questions with the closest correct answers from the given list What is the present worth of base amount? A $1595 D B. 51280 C. 57302 What is the present worth of gradient amount? What is...
14) The maintenance cost for a car this year is expected to be $600. The cost...
14) The maintenance cost for a car this year is expected to be $600. The cost will increase $50 each year for the subsequent 9 years. The interest is 8% compounded annually. The present worth of maintenance for the car over the full 10 years is nearest to: a) $4,700 b) $5,100 c) $5,300 d) $5,500
A coal-fired power plant has upgraded an emission control valve. The modification cost $8,000 and...
A coal-fired power plant has upgraded an emission control valve. The modification cost $8,000 and its expected to last 6 yearw with a $200 savage value. The maintenance cost is expected to be high at $1700 the first year and, increasing by 11% per year thereafter. The firm uses an interest rate of 8%. A) Calculate the equivalent Annual expense of the modification and the maintenance cost? B) What is the future worth of the maintenance cost and the modification...
#7: A company expects the cost of equipment maintenance to be $5,000 in year one, ss,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year,...
#7: A company expects the cost of equipment maintenance to be $5,000 in year one, ss,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth ofthe maintenance cost is nearest to a. $38,220 b. $42,170 C. $46,660 d. $51,790
#7: A company expects the cost of equipment maintenance to be $5,000 in year one, ss,500 in year two, and amounts increasing by $500 per year...
1. A magazine subscription is $ 12 annually, $6 semi-annually, or $ 35 for a 3-year...
1. A magazine subscription is $ 12 annually, $6 semi-annually, or $ 35 for a 3-year subscription. If the value of money is 12%, which choice is better? A) Annual subscription, B) 3-year subscription C) Semi-annual subscription 2. A tunnel to transport water through the Lubbock mountain range initially cost $1,000,000 and has expected maintenance costs that will occur in a 6-year cycle as shown. End of year: 1 Maintenance $ 35,000 35,000 The capitalized cost at 8% interest is...
2. Atunnel to transport water through the Lubbock mountain range initially cost $1,000,000 and has expected maintenance costs that will occur in a 6-year cycle as shown. End of year: 1 Maintenance $ 35,000 35,000 The capitalized cost at 8% interest is closest to: 35,000 45,000 $5,000 35,000 45,000 45,000 60,000 60,000 a) $1,003,300: b) $1,518,400: c) $41,468.8 d) $13,018,350: e) $10, 250, 100: f) $42,500
Q2 (a) Maintenance cost for CNC Milling machine was RM 10,000 in year 1 through 3 and RM 20,000 in year 4 through 9. Determine the present worth at an interest rate of 4.5 % per year. (20 marks) Q2 (b) Table 1 shows deposit into saving account with rate of return 8% per year. Determine the future value at year 9. (25 marks) Table 1: Deposit Money into Saving Account Information Year Deposit, RM per year 0 800 1...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...
16. A water treatment plant will last for 15 years. The cost of the water treatment process has been decreasing according to a uniform gradient. The cost in year 1 was $10,000 and in year 2 it was $9,500, with costs decreasing by $500 each year till years 15. At an interest rate of 10% per year, the present worth (in year 0) of the water treatment cost is closest to A. $52,321 B. $56,061 C. $96,136 D. $55,984 17....
uestion 8 10 points The maintenance costs of a piece of equipment are expected to be S1 500 at the end of the first year and expected to increase by $125 each year through year seven Assuming an interest rate of 10% Match the following questions with the closest correct answers from the given list What is the present worth of base amount? A $1595 D B. 51280 C. 57302 What is the present worth of gradient amount? What is...
14) The maintenance cost for a car this year is expected to be $600. The cost will increase $50 each year for the subsequent 9 years. The interest is 8% compounded annually. The present worth of maintenance for the car over the full 10 years is nearest to: a) $4,700 b) $5,100 c) $5,300 d) $5,500
#7: A company expects the cost of equipment maintenance to be $5,000 in year one, ss,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth ofthe maintenance cost is nearest to a. $38,220 b. $42,170 C. $46,660 d. $51,790
#7: A company expects the cost of equipment maintenance to be $5,000 in year one, ss,500 in year two, and amounts increasing by $500 per year...
1. A magazine subscription is $ 12 annually, $6 semi-annually, or $ 35 for a 3-year subscription. If the value of money is 12%, which choice is better? A) Annual subscription, B) 3-year subscription C) Semi-annual subscription 2. A tunnel to transport water through the Lubbock mountain range initially cost $1,000,000 and has expected maintenance costs that will occur in a 6-year cycle as shown. End of year: 1 Maintenance $ 35,000 35,000 The capitalized cost at 8% interest is...
Most questions answered within 3 hours.
-
A 2400-kg airplane pulls two gliders, the first of mass 330 kg
and the second of...
asked 7 minutes ago -
When I have a regression equation such as Y = beta 0 + beta 1 X...
asked 11 minutes ago -
1) Describe how the firm, Google is organized. a. Note the
formal structure (Organizational Charts); also...
asked 17 minutes ago -
Q 1 Give a numerical example of non routine decision,
Determine the relevant costs for this...
asked 18 minutes ago -
A car moving at 87 km/h has tires of 76 cm diameter. If the
vehicle comes...
asked 34 minutes ago -
Most of the galaxies in the universe are observed to be moving
away from Earth. Suppose...
asked 37 minutes ago -
Paired research designs, also sometimes referred to as repeated
measures designs, are associated with some common...
asked 36 minutes ago -
You working as a clinical engineer dealing with
autoclaves, xrays and life care machines, in what...
asked 38 minutes ago -
Explain in detail (not just enumerate) each of Koch’s
postulates to determine the etiology of a...
asked 50 minutes ago -
Assume ABC Company has asked you to not only prepare their 2017
year-end Balance Sheet but...
asked 48 minutes ago -
You have just had a new set of tires put on your car, and now
the...
asked 53 minutes ago -
Please answer ASAP 2) Choose a point at random from the unit
square [0, 1] ×...
asked 1 hour ago