Determine the net present worth of a facility at an interest rate of 4% with a life span of 15 years provided the following: Initial cost = $1,500,000 Annual 0&M = $36,000 that increases $2000 per year. Additional maintenance at year 10 = $50,000 Salvage value = $2,750,000.
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- 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.Consider the financial data for a project given in the table below. Initial investment Project life Salvage value Annual revenue $70,000 6 years $10,000 $26,000 Annual expenses $7,000 (a) What is i for this project? 18.1 % (Round to one decimal place.) (b) If the annual expense increases at a 7% rate over the previous year's expenses, but the annual income is unchanged, what is the new / - 16 % (Round to one decimal place.) (c) In part (b), at what annual rate will the annual income have to increase to maintain the same i obtained in part (a)? The annual income has to increase at% per year (Round to one decimal place.)What is the annual equivalent worth of a project where (a) the initial investment is $50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation and maintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15 years? Assume rate of return is 8%. A. $-41,200 B. $13,438 C. $6,800 D. $288 E. -$712 F. $3,600
- What is the capital recovery (CR) cost of the project? Assume MARR = 6% per year. Cash Flow First cost, S Annual cost, S per year Revenue, S per year Salvage value, S$ Life, years -1,000,000 -10,000 110,000 00Required information A project has a first cost of $670,000, a salvage value of 27% of the first cost after 3 years, and annual (GI-OE) of $275,000. Assume the company has a Te of 37%. Determine the approximate after-tax rate of return (ROR). The after-tax rate of return (ROR) is determined to beFind present amount or capitalized cost and A values at i= 5% of long-term public project if Nonrecurring costs: first $150,000; one-time of $50,000 in year 10 Recurring costs: annual maintenance of $8000 (years 1-6) and $9000 thereafter; Upgrade costs $15,000 each 15 years Also draw a cash flow diagram
- What equation gives the capitalized cost at 8% interest of the structure described below? Initial cost = $6 million Annual O&M cost = $100k Major repair cost = $2 million every 30 years, beginning 30 years from now.A project has a first cost of $14,000, uniform annual benefits of $2,400, and a salvage value of $3,000 at the end of its 10-year useful life. What is its net present worth at an interest rate of 12%? Select one: O a. $300 O b. $526 O c. $450 O d. $600 Next page R03-07.06.2021 Time:14.30 Jump to. Rabiu (Log out) _204 prime Video AK tu O 4x O ENG 14:38 24/06/2021Project x... Useful life 9years Initial cost : 286000 Annual revenues : 125000 Annual O&M cost: 73000 Salvage value:28600 Project Y Useful life 18years Initial cost: 184000 Annual revenues: 107000 Annual O&M cost:68000 Upgrade cost at the Th7 year :69000 Q1: Draw cash flow of the two projects and recommend one of the projects using Annual Worth method using i:6%.
- A machinery worth BD20,000 has a lifetime of10 years and a salvage value of Rs. 1500. Calculate the accumulated depreciation and book value at the end 10th year by if annual interest rate is 9% using Sinking fund method, Service output method. Show the calculation in a table for all уears.Compare the alternatives shown on the basis of their capitalized costs using an interest rate of 10% per yearquarterly. Alternative M Alternative N First cost, P Annual operating cost, P per year 50,000 Salvage value, Life, years 150,000 800,000 10,000 1,000,000 8,000 5 25Vaughn Company has the following information about a potential capital investment: Initial investment $ 280,000 Annual cash inflow $ 74,000 6 years 13% Expected life: Cost of capital 1. Calculate the net present value of this project. (Future Value of $1. Present Value of $1. Euture Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.) Net Present Value