Dulding a hghway, the district engineer e faced with the ollematives of bulding a 4-lane Unde pass Ihal would take care of ali tuture needs of puidlng of a 2 ane underpas now and e second underpass 20 years later. For the lane underpass Frst cost = P400,000 Annual maintenance cost = PI0.000 No salvage value For the 2-lane underpass First cost = P270.000 Annual maintenance cost P8.000 No salvage value

Dulding a hghway, the district engineer e faced with the ollematives of bulding a 4-lane Unde pass Ihal would take care of ali tuture needs of puidlng of a 2 ane underpas now and e second underpass 20 years later. For the lane underpass Frst cost = P400,000 Annual maintenance cost = PI0.000 No salvage value For the 2-lane underpass First cost = P270.000 Annual maintenance cost P8.000 No salvage value

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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. A steel pedestrian overpass must either bereinforced or replaced. Reinforcement would cost$25,000 and would make the overpass adequate for anadditional 6 years of service. If the overpass is torndown now, the scrap value of the steel would exceedthe removal cost by $15,000. If it is reinforced, it isestimated that its net salvage (market) value would be$18,000 at the time it is retired from service. A newpre-stressed concrete overpass would cost $140,000 andwould meet the foreseeable requirements of the next40 years. Such a design would have no net scrap or MV.It is estimated that the annual expenses of the reinforcedoverpass would exceed those of the concrete overpassby $3,200. Assume that money costs the state 8% peryear and that the state pays no taxes. What would yourecommend?
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An engineer bought an equipment for P 500,000.00. He spent an additional amount of P 30,000 for installation and other expenses. The salvage value is 10% of the initial first cost. Life = 15 years. Compute the following: (a) Annual Depreciation. (b) Book Value after 6 years. (c) Total depreciation after 10 years. Answers: a. 31,800 b. 339,200 c. 318,000 show complete solution with formulas please using depreciation straight line method
A cooling water pumping station at a manufacturing plant in iligan city cost 30,000,000 to construct and it is projected to have 25 year life with an estimated salvage value of 10% of construction cost. Calculate the annual depreciation charge for year 10(d10)using:a.straight line method b.declining balance method c.double declining balance method d.sinking fund at 10% e.sum-of-the-year digit method B.)if the cooling water pumping atation will be book-depreciated to zero over a recovery period of 30 years using the double blance method

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