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Find the capitalized cost for the following information: Note: Write a positive number, with at least...
Question 12 For alternatives shown in the table below you are trying to decide which alternative you should choose based on their capitalized costs (CC). Use an interest rate of 10% per year. Machine A Machine B 240,000 First cost (AED) 20,000 Annual maintenance cost per year, AED 5,000 2.300 Periodic cost every 10 years, AED 10,000 Salvage cost 2000 Life. vears Match the closest correct answers for the below questions: Calculate the present value of the maintenance costs for...
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...
Question 12 15 points For alternatives shown in the table below you are trying to decide which alternative you should choose based on their capitalized costs (CC). Use an interest rate of 10% per year. Machine A Machine B First cost (AED) 20,000 240,000 Annual maintenance cost per year, AED5,000 2,300 Periodi e cost every 10 years, AED 10,000 Salvage cost 2000 Life, years Match the closest correct answers for the below questions: A. [Alternative A] B. -44,483.50] C. I-269,275]...
8) Determine the capitalized cost of an alternative that has a first cost of $155,000, an annual maintenance cost of $72,000, and a salvage value of $78,000 after its 10-year life. Use an interest rate of 6%. a. a) $187,142 b.c) $1,256,890 c. d) $1,452,367 d. b) 5871,000 QUESTIONS 9) The construction cost of a park is $600,000. Annual maintenance and operating costs are $120,000 per year. At an interest rate of 10% per year, the capitatlized cost of the...
Find the breakeven (Ai*) for the following projects (Incremental cash flow), Using interpolation. Note: Do not write the percentage sign (%) in the blank. Just write a number with two digits after decimal point like 18.32. А B -10.000 -60,000 First cost $ Annual operationg cost, $ Salvage value, $ -78,000 -65,000 6.000 11,000 Life year 3 6
Purchase $320.000 Lease Alternative Initial Cost Lease Annual Operating costs Salvage Value Life, years $40 000 $7.000 $8500 $ 80.000 5 5 c. PW of Purchase Option a. PW of the lease Option 0. Salvage value of purchase Option Decision to Purchase or Lease 567.942 9-193,337 C5-309 5515 5-49,072 5-319.327 * Lease You are given the following is about two machine with 10% Com First costs 30 000 Antal maintenance con 111000 Persodi me cost every years Salvare values 6000...
Two contractors submitted the following cost estimates for a proposed bridge: Bridge A Bridge B First Cost P20M P27M Life 20 years 30 years Salvage Value P500,000 P750,000 Annual Upkeep P160,000 P50,000 Repairs P1.5M every 4 years P1M every 6 years If interest is 7.5% compounded annually, which bridge is cheaper in terms of its capitalized cost? and by how much?
Solve it by using Compounded Interest Factors
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A local planning commission has estimated the first cost of a new city- owened amusement park to be $35,000. They expect to improve the park by adding new rides every year for the next 5 years at a cost of S6000 per year. Annual operating costs are expected to be $12,000 the first year; these will increase by $2000 per year until year 5. After that time, the operating expenses will remain...
The Capitalized cost (CC) of the project is
The property appraisal district for Marin County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. If the new system will be used for the indefinite future, find the equivalent value (a) now and (b) for each year hereafter. The system has...
PROBLEM NO. 4 Machine X has an initial cost of $10,000, annual maintenance of $500 per year, and no salvage value at the end of its four-year useful life. Machine Y costs $20,000. The first year there is no maintenance cost. The second year, maintenance is $100, and increases $100 per year in subsequent years. The machine has an anticipated $5,000 salvage value at the end of its 12-year useful life. If interest is 8%, which machine should be selected?...