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At 7.5%, a bridge cost P 200M with a life of 23 years. The bridge must be partially rebuilt at a cost of P 140 M at the end of each 23 years. Calculate the capitalized cost if an annual maintenance of P 590,000 is required. Express your answer in whole number.
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- Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?A bridge that was constructed at a cost of P 7.5 M, is expected to last 30 years at the end of which time its renewal cost will be P 4 M. Annual repairs and maintenance is P 300,000. What is the capitalized cost of the bridge at an interest of 6%?A 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.
- 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 ₱75,000,000 is expected to last 30years, at the end of which time its renewal cost will be P40,000,000. Annualrepairs and maintenance are P3,000,000. What is the capitalized cost of thebridge at an interest of 6%?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. 54,789,158
- A building cost P8.5 million and the salvage value is P50,000 after 23 years. The annual maintenance cost is P85,000, costs of repair is P350,000 every 3 years. Find the capitalized cost if money worth 14% per annum.What is the renewal cost?What is the capitalized cost?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.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 small bridge can be constructed for $ 20,000 with a life of 30 years, after which it can be rebuilt at the same cost. Maintenance cost for the 30 - year life are estimated to be $ 1,000 each year for the first 5 years, and increase to $ 1,500 in the succeeding years thereafter. Compute the capitalized cost of the bridge at 12%. a. $ 32,526 b. $ 33,459 c. $ 31,388 d. $ 34,128Capitalized cost is an application of perpetuity. It is the sum of the first cost and the present worth of all future payments and replacements. A machine costs P300,000 new, and must be replaced at the end of each 15 years. If the annual maintenance required is P5,000, find the capitalized cost, if money is worth 5% and the salvage value is P50,000.The ABC Transportation estimates the cost of upgrading a highway to be $85million now. Resurfacing and other maintenance will cost $550,000 every 3 years. Annualrevenue is expected to be average $18.5 million. If i = 8% per year, what isa) the capitalized cost now,b) the equivalent A value of this capitalized cost?
