2. The DPWH has two proposed operating systems to charge and track toll fees. The 1st operating system has.a cost of P30M and anadditional cost of P50M after 10 years. The annual software maintenance contract cost is P5M for the first 5 years and P10Mthereafter. In addition, there is expected to be recurring major upgrade cost of P25M every 15 years. The 2nd operating system costsP20M, annual software maintenance cost P10,062,833 every year and thereafter, additional repair of P7,794,803 every 5 years and arecurring major upgrade cost of P5,119,877 every 11 years. If interest is 21% cpd. annually, find the Capitalized Cost of the 2ndOperating System.

Capitalized Cost: A capitalized cost is a cost of expense added to a fixed asset. Capitalized costs…

Answered: 2. The DPWH has two proposed operating…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 15EB: Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is...

See similar textbooks

Similar questions

The DPWH has two proposed operating systems to charge and track toll fees. The 1st operating system has a cost of P30M and an additional cost of P50M after 10 years. The annual software maintenance contract cost is P5M for the first 5 years and P10M thereafter. In addition, there is expected to be recurring major upgrade cost of P25M every 15 years. The 2nd operating system costs P20M, annual software maintenance that costs P10,062,833 every year and thereafter, additional repair of P7,794,803 every 5 years and a recurring major upgrade cost of P5,119,877 every 11 years. If interest is 25% cpd. annually, find the Capitalized Cost of the 2nd Operating System.
Improvements will be made in an assembly line with an initial investment cost of 67 000 TL, annual maintenance costs 3500 TL in 3 years. Each major maintenance is worth 6000 TL each, and the useful life of these improvements is expected to be 12 years. Find the present value of costs when the interest rate is 8%.
Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR, 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: O a. 1.44 years O b. 1.81 years O c. 2.82 years O d. None of these O e. 1.63 years
Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR , 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: О а. 1.63 years ОБ. 1.81 уеars О с. 2.82 years O d. None of these О е. 1.44 years
The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60,000 per year for the next 5 years, cost of overhaul at the end of the 5th and 8th year is P140,000. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually.
Improvements with an initial investment cost of 67,000 TL will be made in an assembly line. Yearlymaintenance costs are 3.500 TL, and major maintenance every 3 years is 6.000 TL each.is worth. As the useful life of these improvements is expected to be 12 years, the interest rateFind the present value of costs when the ratio is 8%.
Dhofar water is installing new equipment at a cost of 140000 OMR. Expected cash flows from this project over the next three years will be 95000 OMR , 80000 OMR and 65000 OMR. The company's discount rate for such projects is 10 percent. What is the project's discounted payback period? Select one: a. 1.81 years O b. None of these Oc. 1.44 years Od. 1.63 years O e. 2.82 years
What will be the equivalent uniform annual amount that will be deposited in a bank for 15 years that will be replaced the capitalized cost of a project with the following cost; The initial cost is P2,000,000 and an additional cost of P500,000 at the end of every 5 years. The annual operating costs are P100,000 at the end of every year for the first 6 years and P160, 000 thereafter. In addition, there is expected to be a major repair work cost of P300, 000 every 13 yrs. Assume i =15%.
An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance cost are as follows: 1styear = P 15, 000 2ndyear = P 17, 000 3rdyear =P 19, 000 4thyear = P 21, 000 5thyear = P 23, 000 How much be budgeted and deposited in a fund that earns 9% per year compounded annually in order to pay for the machine.
Omantel is installing new equipment at a cost of 250000 OMR. Expected cash flows from this project over the next three years will be 145000 OMR , 190000 OMR and 185000 OMR. The company's discount rate for such projects is 14 percent. What is the project's discounted payback period? اخترأحد الخيارات a. 1.53 years b. 1.84 years c. None of these d. 2.82 years e. 1.54 years
A computer platform requires $160,000 initial investment and additional $80,000 after 10 years. The annual software maintenance costs are $6,000 for the first 4 years and $11,000 thereafter. In addition, there is expected to be a recurring major upgrade cost of 27,000 every 13 years. Assuming 5% interest rate, calculate the capitalized value of the project's costs (Round your answer to 2 decimal places and don't include the $ sign in your answer)
Consider the following project. Costs: $100,000, at time t = 0. $45,000, at time t = 4. Income: Three payments of $10,000, each one year apart, with the first payment at time t = 1. Four payments of $60,000, each paid every 4 years apart, with the first payment at time t = 4.5. Assuming that the project is financed by a loan which is subject to interest of 6% per annum (effective), and that interest is earned in an investment fund at 3% per annum (effective), determine the accumulated value of this project at time t = 20. You may assume that debt (the loan) is to repaid prior to money being invested in the investment fund. Give your answer to the nearest dollar. Show all working.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS