Aroad's maintenance costs $30,000 annually. Redoing the surface would reduce annual maintenance to $5000 per year...
4. Yearly labor costs of a highway maintenance group are currently $420,000/year. If labor rates escalate at a 12% rate and general inflation increases at 9%, determine for each of the next 6 years the labor cost in then-current and constant worth dollars. (3.3) of the next be ars 129 rate and Question: In a new, highly automated factory, labor costs are expected to decrease at an annual compound rate of 5%; material costs are expected to increase at an...
Transcontinental Pipelines is considering a technical process that is expected to reduce annual maintenance costs by $76,000 What is the maximum amount of money that could be invested in the process to be economically feasible if interest is 7.6% compounded semi-annually?
a new mill costs $5000 and has an annual maintenance fee of $200. salvage value after 5 years is $1000. if the interest rate is 8% the present worth is nearly?
1 Uniform Annual Cash Flow An engineer has an fluctuating future budget for the maintenance of a particular machine. During each of the first years, $10,000 per year will be budgeted. During the second 5 years, the annual budget will be $15,000 per year. In addition, $5000 will be budgeted for an overhaul (major repair) of the machine at end of the 4th year, and again at the end of the 8th year. What uniform annual expenditure (EUAC) would be...
Fabco, Inc., is considering purchasing flow valves that will reduce annual operating costs by $10,000 per year for the next 12 years. Fabco's MARR is 7%/year. Using an internal rate of return approach, determine the maximum amount Fabco should be willing to pay for the valves. $
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...
6A. You can continue to use your less efficient machine at a cost of $20,000 annually for the next five years. Alternatively, you can purchase a 5-year more efficient machine for $30,000 plus $10,000 annual maintenance. At a cost of capital of 15%, The EAC of the new machine will be ............... than that of the old machine by $............ greater/lower 6B. You can continue to use your less efficient machine at a cost of $10,000 annually for the next...
Tuppence Ltd uses an ageing plant whose current resale value of $200,000 is expected to reduce by $20,000 per year. The plant’s maintenance and depreciation expenses, in total, are currently $10,000, but this annual total cost is expected to increase by $15,000 per year, as the plant really does require more and more maintenance. Tuppence Ltd knows it can buy a replacement plant anytime over the next 5 years for a price of $350,000, which it would be able to...
Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years. Number of Visitors per Year(thousands) Maintenance Costs ($000) 1,860 $ 3,322 2,040 3,655 2,900 5,090 Required: a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor. b. The company expects a record 2,600,000 visitors next year. What would be the estimated maintenance costs? Use the high-low...
Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years. Number of Visitors per Year (thousands) 1, 885 2, 065 3,595 Maintenance Costs (S000) $4,493 4,934 8, 426 51 Required: a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor. b. The company expects a record 2,000,000 visitors next year. What would be the estimated maintenance...