A company currently spends $3,263 on operating and maintenance costs per year. They expect these cost...
A company currently spends $3,263 on operating and maintenance costs per year. They expect these cost to increase by $1,916 for the next 7 years. What is the equivalent annual cost of these O & M costs if the MARR is 11.2%?
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A company currently spends $3,263 on operating and maintenance
costs per year. They expect these cost...
A corporate jet costs $1,350,000 and will incur $200,000 per year in fixed cost (maintenance, …)...
A corporate jet costs $1,350,000 and will incur $200,000 per year in fixed cost (maintenance, …) and $277 per hour variable cost (fuel, …). The jet will be operated 1200 hours per year for 5 years and then sold for $650,000. The jet revenues $1,000 per hour. The MARR is 15% per year. Determine the Equivalent Uniform Annual Cost (EUAC) of the jet.
A small company heats its building and spends $7,800 per year on natural gas for this...
A small company heats its building and spends $7,800 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 9% per year starting one year from now (i.e., the first cash flow is $8,502 at EOY one). Their maintenance on the gas furnace is $345 per year, and this expense is expected to increase by 15% per year starting one year from now (i.e., the first cash flow for this expense is $396.75...
A small company heats its building and spends $8,000 per year on natural gas for this...
A small company heats its building and spends $8,000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (i.e., the first cash flow is $8,800 at EOY one). Their maintenance on the gas furnace is $345 per year, and this expense is expected to increase by 15% per year starting one year from now (i.e., the first cash flow for this expense is $396.75...
4. Yearly labor costs of a highway maintenance group are currently $420,000/year. If labor rates escalate...
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...
A machine which initially costs $14,000 has operating costs of $800 per year. These operating costs...
A machine which initially costs $14,000 has operating costs of $800 per year. These operating costs include routine maintenance, but additional major overhauls costing $1,600 each are anticipated in years 2, 4, and 6. The machine is sold for its salvage value of $2,400 at the end of year 7. The machine's owners use an interest rate of 8% for their financial analysis. a) Draw the cash flow diagram for this scenario. b) What is the net present value of...
Ok so a company wants to deposit extra money to cover the increased maintenance costs for...
Ok so a company wants to deposit extra money to cover the increased maintenance costs for the next 10 years. How much is the company to deposit now if they expect the costs to increase by $4,953 per year, starting from year 2, and their MARR is 1%? I got 46911.37 but I am not sure if I am wrong because I did not do anything with the starting from year 2. Thanks
The HalX computer system cost $194,586. It will allow the company to save $89,837 per year.
Question 1The HalX computer system cost $194,586. It will allow the company to save $89,837 per year. It will cost $22,588 per year to run. The system has a lifespan of 6 years. Using a MARR of 5% interest, what is the annual worth of this system?Question 2 Pacific Consolidated just bought a new building for $338,064. The utilities to run the building will be $8,981 per year. The company anticipates it will be able to collect $38,155 each year by...
Aroad's maintenance costs $30,000 annually. Redoing the surface would reduce annual maintenance to $5000 per year...
Aroad's maintenance costs $30,000 annually. Redoing the surface would reduce annual maintenance to $5000 per year for 5 years, and to $15,000 per year for the next 5 years. Then maintenance costs return to $30,000 annually. If the interest rate is 6% per year, what is the maximum first cost that can be justified?
A Car costs $30,000. Operating costs are $3000 the first year and increase by $1,000 each...
A Car costs $30,000. Operating costs are $3000 the first year and increase by $1,000 each subsequent year. Its market value declines by 35% annually. At a MARR of 10%, what is the economic service life of this Car and associated annual equivalent cost?
5) (17 points) Maintenance costs for a bridge are cyclic with the following costs occurring over...
5) (17 points) Maintenance costs for a bridge are cyclic with the following costs occurring over a 5-year period. MARR is 10% per year compounded annually. EOY 2 3 5 Maintenance S50 million $75 million $75 million $75 million $150 million Cost 1 4 a) (14 points) Compute an equivalent uniform annual cost over a single 5-year maintenance cycle. b) (3 points) It is anticipated that the sequence of costs will repeat every 5 years forever. If so, determine the...
A small company heats its building and spends $8,000 per year on natural gas for this purpose. Cost increases of natural gas are expected to be 10% per year starting one year from now (i.e., the first cash flow is $8,800 at EOY one). Their maintenance on the gas furnace is $345 per year, and this expense is expected to increase by 15% per year starting one year from now (i.e., the first cash flow for this expense is $396.75...
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...
Aroad's maintenance costs $30,000 annually. Redoing the surface would reduce annual maintenance to $5000 per year for 5 years, and to $15,000 per year for the next 5 years. Then maintenance costs return to $30,000 annually. If the interest rate is 6% per year, what is the maximum first cost that can be justified?
5) (17 points) Maintenance costs for a bridge are cyclic with the following costs occurring over a 5-year period. MARR is 10% per year compounded annually. EOY 2 3 5 Maintenance S50 million $75 million $75 million $75 million $150 million Cost 1 4 a) (14 points) Compute an equivalent uniform annual cost over a single 5-year maintenance cycle. b) (3 points) It is anticipated that the sequence of costs will repeat every 5 years forever. If so, determine the...
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