capitalized cost At 6%, find the capitalized cost of a bridge whose cost is P250M and life is 20 years, ifthe bridge must be partially rebuilt at a cost of P100M at the end of each 20 years.P297,308,323.10P298,308,323.10O P295,308,323.10P296,308,323.10

In economics, present values refer to the current value of a future stream of cash flow. Net present…

Answered: At 6%, find the capitalized cost of a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a palletizer at a bottling plant that has a first cost of $150,000, operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of 30 years. Assume an interest rate of 8%. What is the annual equivalent cost of the investment if the planning horizon is 30 years? a. $29,760 b. $30,600 c. $31,980 d. $35,130.
A concrete pavement on a street would cost P 10,000 and would last for 5 years with negligible repairs. At the end of each 5 years, P 1000 would be spent to remove the old surface before P 10,000 is spent again to lay a new surface. Find the capitalized cost of the pavement is interest rate is at 15%. P 20,876.47 P 59,814.46 P 2490.72 P 3490.72
CustomMetalworks is considering the expansion of their cablefabrication business for towers, rigging, winches, and many other uses. Theyhave available $250,000 for investment and have identified the followingindivisible alternatives, each of which will provide an exit with full return ofthe investment at the end of a 5-year planning horizon. Each year,CustomMetalworks will receive an annual return as noted below. MARR is12%.Investment Initial Investment Annual Return1 $25,000 $7,5002 $40,000 $12,0003 $85,000 $20,0004 $100,000 $22,0005 $65,000 $17,000For the original problem:a. Which alternatives should be selected by CustomMetalworks?b. What is the present worth for the optimum investment portfolio?c. What is the IRR for the optimum investment portfolio?In addition to the original opportunity statement, CustomMetalworks hasdetermined that investments 3 and 4 are mutually exclusive andinvestment 5 is contingent on either investment 1 or 2 being funded.d. Now, which alternatives should…
Consider a project which involves the investment of P100,000 now and P100,000 at the end of one year. Revenues of P150,000 will be generated at the end of years 1 and 2. What is the present value of this project if the 3 effective annual interest rate is 10% ? a P65,421.50 P68,421.50 b P67,421.5 P69,421.50
Use Formula, not the table. Your company is environmentally conscious and is looking at two heating options for a new researchbuilding. What you know about each option is below, and your company will use an annual interest rate of 8%for this decision: Gas Heating Option: The initial equipment and installment of the natural gas system would cost $225,000 rightnow. The maintenance costs of the equipment are expected to be $2,000 per year, starting next year, for eachof the next 20 years. The energy cost is expected to be $5,000, starting next year, and is expected to rise by 5%per year for each of the next 20 years due to the price of natural gas increasing. Geothermal Heating Option: Because of green energy incentives provided by the government, the geothermalequipment and installation are expected to cost only $200,000 right now, which is cheaper than the gas lines.There would be no energy cost with geothermal, but because this is a relatively newer technology, themaintenance costs…
At 6%, find the capitalized cost of a bridge whose cost is P250M and life is 20 years, if the bridge must be partially rebuilt at a cost of P100M at the end of each 20 years. The maintenance cost for a sewing machine this year is expected to be P500. The cost will increase P50 each year for subsequent 9 years. The interest is 8%. What is the approximate present worth of maintenance for the machine over the full 10 year period?
An item is purchased for P100,000. Annual cost are P18,000. Using 8%, what is the capitalized cost of the perpetual service? P325,000 P320,000 P350,000 P335,000
A man is considering putting up his own enterprise, where an investment of 800,000 will be required and will take 15 years to recoup. He estimates his annual sales at 800,000 along with the following operating costs. Materials =160,000/ yearLabor = 280,000/ yearOverhead = (40,000 + 10% of sales)/ yearSelling Expense = 60,000/ yearThe man will give up his regular job paying 216,000 Php per year and devote all his time to the operation of his business, this will result in decreasing his labor cost by 40,000 per year, material cost by 28,000 per year and overhead cost by 32,000 per year. If the man expects to earn at least 20% of his capital, should he invest? Solve using a) Rate of return method b) annual worth method c)present worth method d)equivalent uniform annual cost method
A company is considering installing solar panels on a roof. The initial installation will cost $30,000, but it will save $260 in electricity each month and last 20 years. If MARR = 0.5%, what is the discounted payback period of the solar panels?
Consider a paletizer at a bottling plant that has a first cost of $141,000, operating and maintenance costs of $16,300 per year, and an estimated net salvage value of $23,500 at the end of 34 years. Assume an interest rate of 8.50%. What is the present equivalent cost of the investment ir the planning horizon is 34 years? $319,326 $309,800 1370,300 O$334,800
5:56 ( Title Give Solution A motorcycle costs P50,000 and has an expected life of 10 years. The salvage value is estimated to be P2,000 and annual operating cost is estimated at P1,000. What is the appropriate rate of return on the investment if the annual revenue is P10,000? 1/1 ET T T 17 II
Consider the accompanying cash flow diagram represented below. Compute the equivalent annual worth at i= 9%. $21,000 Answer- $3681.26 Years 1 3 4 6 $4,000 $4,000 $7,000 $10,000, $13,000 $16,000

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At 6%, find the capitalized cost of a bridge whose cost is P250M and life is 20 years, if the bridge must be partially rebuilt at a cost of P100M at the end of each 20 years. O P297,308,323.10 O P298,308,323.10 O P295,308,323.10 P296,308,323.10