At 6% interest rate, find the capitalized cost of a bridge whose cost is P 300 million and life is 20 years. If the bridge must be partially rebuilt at a cost of P 100 million at the end of each 20 years. P 445,178,192 O P 145,413,221 P 345,307,595 O P 245,398,210
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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.A bridge that was constructed at a cost of P 75,000 is expected to last 30 years, at the end of which time its renewal cost will be P 40,000. Annual repairs and maintenance are P 3,000. What is the capitalized cost of the bridge at an interest of 6%? 133,433.00 50,000.00 125,000.00 140,625.00 75,948.67 58,433.00The following are the costs for one of the alternatives to construct a new bridge: Construction cost = $2200000 M Annual Maintenance cost = $48000 Renovation cost = $800000 every 15 years Based on an interest rate = 5% per year, what is the capitalized cost of this alternative? M R
- A bridge with an initial cost of P50,000,000 has a life of 20 years. The bridge must be partially re-built at the end of each 20 years at a cost of P10,000,000. It will have an annual operating cost of P1,000,000 for the first 10 years and P500,000 thereafter. At 6% annual interest; Determine Case I Capitalized Cost a. 54,530,759 b. 59,658,254 c. 59,319,917 d. 54,789,158A bridge with initial cost of P50,000,000 has a life of 20 years. The bridge must be partially re-built at the end of each 20 years at a cost of P10,000,000. It will have an annual operating cost of P1,000,000 for the first 10 years and P500,000 thereafter. At 6% annual interest, compute its capitalized cost.A certain dam costs P400,000 and will serve the purpose for 20 years. At the end of that time it must be enlarged at a cost of P200,00O. If the dam had been built larger than originally, the cost would have been P500,000. Bonds pay interest at the rate of 5% per annum and the interest paid annually. Compare the two alternatives and calculate the saving or loss. O The first alternative is better O The second alternative is better
- 18. Determine the capitalized cost of a bridge whose cost is P200 Million and its life is 50 years, if the bridge must be partially rebuilt at a cost of P100 Million at the end of each 50 years, and an annual maintenance cost is P500,000 and it will be needed to be repair every 10 years for P2 Million. i = 6%What is the capitalized cost of a structure that will require construction costof P1,000,000 immediately and P800,00 each year for the next 4 yearsand annual year –end maintenance of P36,000 plus the expenditure ofP200,000 an the end of each 10-year period for replacement? Assume12% interest rate.4. A bridge that was constructed at a cost of P75,000,000 is expected to last 30 years, at the end of which time its renewal cost will be P40,000,000. Annual repairs and maintenance are P3,000,000. What is the capitalized cost of the bridge at an interest of 6%? Capitalized Cost = First cost + Q + X Q = PW (P/A, i, k) X = (1+ i)k – 1
- A bridge that was constructed at a cost of $80,000 is expected to last 50 years, at the end of which time its renewal cost will be $50,000. Annual repairs and maintenance costs are $5,000. What is the capitalized cost of the bridge at an interest rate of 8%?A new bridge with a 100-year life is expected to have an initial cost of $25 million. This bridge must be resurfaced every ten years at a cost of $2 million. The annual operating costs are estimated to be $55000. Determine the approximate present worth cost of the bridge using the capitalized worth method (take the life of the bridge as infinite). Use interest rate of 15% per year. 26.02 million dollars 25.77 million dollars 25.47 million dollars 0.47 million dollars 25.86 million dollars4. A new bridge connecting Tuguegarao and Solana with a 100 year life is expected to have an initial cost of $20 M. The bridge must be resurfaced every five years at a cost of $ 1 M. The annual inspection and operating costs are estimated to be $50, 000. Determine the present cost of the bridge using the capitalized equivalent approach (that is the life of the bridge as infinite), if the interest rate is 10% per compounded annually. Draw the cashflow diagram.