The following data shows the different sizes of pipes which a company wishes to use as a replacement for the old pipesystem that they are using.Diameter = 100mm Cost of Pipe=P1800000 Annual Maintenance Cost3P88000 Operating cost/hour%3DP480Diameter = 150mm Cost of Pipe=P1120000 Annual Maintenance Cost-P136000 Operating cost/hour=P500Diameter = 250mm Cost of Pipe3P1000000 Annual Maintenance Cost-P60000 Operating cost/hour%3DP620Total number of operating hours per year = 500Replacement is done every 10 yearsMoney is worth 10% annually.Compute the present worth cost of the 150mm pipe.Key in your answers in 2 decimal places. Do not upload any file.Do not use commas to separate place values and do not include a unit.Example, if your answer is P3,4201.8034 please type 34201.80

Diameter of Pipe=100mm Cost of Pipe=1800000 Useful life=10 years Annual Maintenance cost(A)=88000…

Answered: Compute the present worth cost of the…

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Compute the present worth cost of the 150mm pipe.

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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Question

The following data shows the different sizes of pipes which a company wishes to use as a replacement for the old pipe
system that they are using.
Diameter = 100mm Cost of Pipe=P1800000 Annual Maintenance Cost3P88000 Operating cost/hour%3DP480
Diameter = 150mm Cost of Pipe=P1120000 Annual Maintenance Cost-P136000 Operating cost/hour=P500
Diameter = 250mm Cost of Pipe3P1000000 Annual Maintenance Cost-P60000 Operating cost/hour%3DP620
Total number of operating hours per year = 500
Replacement is done every 10 years
Money is worth 10% annually.
Compute the present worth cost of the 150mm pipe.
Key in your answers in 2 decimal places. Do not upload any file.
Do not use commas to separate place values and do not include a unit.
Example, if your answer is P3,4201.8034 please type 34201.80

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