6. A concrete pavement on a street would cost P 20,000 and would last for 5 years with negligible repairs. At the end of each 5 years, PhP 1500 would be spent to remove the old surface before P 20,000 is spent again to lay a new surface. Find the annual cost of the pavement at 5%. C PhP 97 819.16 D. PhP 49,814.40

6. A concrete pavement on a street would cost P 20,000 and would last for 5 years with negligible repairs. At the end of each 5 years, PhP 1500 would be spent to remove the old surface before P 20,000 is spent again to lay a new surface. Find the annual cost of the pavement at 5%. C PhP 97 819.16 D. PhP 49,814.40

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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5. A concrete road requires no upkeep until the end of 3 years when P54, 000 will be needed for repairs. After this P93, 000 will be needed for repairs at the end of each year for the next 6 years, then P125, 000 at the end of each year for the next 5 years. If money is worth 15% compounded annually, what was the equivalent uniform annual cost for the 14-year period?
# 4. It costs P500,000.00 at the end of each year to maintain a section of Kenon Road in Baguio city. If money is worth 10 %, how much would it pay to spend immediately to reduce the annual cost to P 100, 000.00.
4. An asphalt road requires no upkeep until the end of 2 years when P60,000 will be neededfor repairs. After this P90,000 will be needed for repairs at the end of each years forthe next 5 years, then P120,000 at the end of each year for the next 5 years. If money isworth 14% compounded annually what was the equivalent uniform annual cost for the 12 yr.period? 5. A new office building was constructed 5 years ago by a consulting engineering firm. Atthe time the firm obtained the bank loan for ₱10,000,000 with a 20% annual interest rate,compounded quarterly. The terms of the loan called for equal quarterly payments for 10-year period with the right of prepayment at any time without penalty.Due to the internal changes in the firm, it is now proposed to refinance the loan throughan insurance company. The new loan is planned for a 20-year term with an interest rate of24% per annum, compounded quarterly. The insurance company has a one-time servicecharge of 5% of the balance. This new loan…
A concrete pavement on a street would cost P 2M and would lasts for 3 years. Minor maintenance cost is P 50,000 per year. At the end of each 3 years, P 100,000 would be spent to remove the old surface before P 1M is spent again to lay a new surface. Find the capitalized cost of the pavement at 6%.
A concrete pavement on a street would cost P10,000 and would last for 5 years with negligiblerepairs. At the end of each years. P1,000 would be spent to remove the old surface beforeP10,000 is spent again to lay a new surface. Find the annual cost of the pavement at 5%
6. A contractor can buy dump trucks for P800,000.00 each(surplus) or rent them for P1,189 per truck per day. The truck has a salvage value of P100,000 at the end of its useful life of 5 years. Annual cost of maintenance is P20,000.00. If money is worth 14% per annum, determine the number of days per year a truck must be used to warrant the purchase of the truck. A. 200. B. 199 C. 145 D. 102
USE MANUAL SOLUTIONA machine has a first cost of ₱100,000 and salvage value of ₱10,000 after 10 years. The annual maintenance of the machine is ₱4,000. If interest rate is 10%, find the annual cost of the machine. A. ₱17,000.34 B. ₱19,647.08 ( ANSWER) C. ₱21,083.56 D. ₱32,074.56
A municipal refuse-collection truck can be purchased for ₱2,400,000. Its expected useful life is six years, at which time its market value will be zero. Annual receipts less expenses will be approximately ₱700,000 per year over the seven-year study period. Determine the present worth given a MARR of 9%. a. ₱740,143.01 b. ₱3,283,066.99 c. ₱1,123,066.99 d. ₱2,082,923.97
An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for repairs. After this P90, 000 will be needed for repairs at the end of each year for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period? P79,245.82 P69,245.82 P59,245.82 P49,245.82
repairs. 4. An asphalt road requires no upkeep until the end of 2 years when sixty thousand pesos, will be needed for After this, ninety thousand pesos will be needed for repairs at the end of each years for the next 5 years, then one hun ared twenty thousand pesos at the end of each year for the next ney is worth 14% compounded anni hally what was the equivalent uniform annual cost for the 12-year period? equivar pound years. If m 5 0 1 2 3 4 5 6 GOK 678 90k q 10 120k 11 12
1. Maintenance costs for a small bridge with an expected 50-yr life are estimated to be P 2,000.00 each year for the first 5 years, followed by a P10.000 expenditure in the 15th year and a P 20,000 expenditure in the 25th year. IfI 12% per year, what is the equivalent uniform annual maintenance costs over the entire 50-yr period? a. P 1,230 b. P 852 C. P 936 d. P 1,159
The average annual cost of damages caused by flooding to a subdivision nearPasig River is estimated at P 5M. To build a gravity dam to protect the area from flooding would cost P 25M and would cost an annual maintenance cost of P 2M. Interest is 11%. What is the present worth of all the damages for 15 years?

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