If you have the capitalized cost of a certain alternative that has a 5-year life, you can get its annual worth by: (a) multiplying the CC by i (b) multiplying the CC by (A/ F, i,5) (c) multiplying the CC by (P/A, i,5) (d) multiplying the CC by (A / P, i,5) (e) Any of the above d e
Q: SWHP has purchased a robotized prescription fulfillment system for faster and more accurate delivery…
A: Given, Initial investment = $3 Million semi-annual operating cost = 200000/2 = $100000
Q: ABC Beverage, LLC purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The…
A: We have given two alternatives, one alternative has an estimated useful life of 10 years and the…
Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…
A: Given Initial cost or first cost of the equipment P=$750,000 Operating cost =$240,000 per year…
Q: LEASE ANSWER AND SHOW SOLUTION A dam will have a first cost of P250,000,000, an annual maintenance…
A: First cost = $25000000 Annual maintenance cost = $1250000 Reconstruction cost = $5000000
Q: A company that manufactures magnetic flow meters expects to undertake a project that will have the…
A: Given FC= $ -840,000 Equipment replacement cost in year 2 = -$300,000 Annual operating cost…
Q: The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a…
A: Design 2B: Cost- $3 million Installation- $142,500 per year to maintain Design 4R: Cost- $3.7…
Q: You purchased a building five years ago for $200,000. Its annual maintenance expense has been…
A: There are two ways to evaluate projects in terms of money: the present value (PW) comparison method…
Q: US. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…
A: Present value refers to the worth of a sum of money that one is going to receive in the future…
Q: 20,000 -90,000 50,000 -10,000 2 4 According to the rule of signs, there can be up to three |rate of…
A: *Answer: Given cash flow i=15%
Q: A remotely located air sampling station can be powered by solar cells or by running an electric line…
A: The given information can be tabulated as follows.
Q: company must relocate one of its factories in three years. Equipment for the loading dock is being…
A: original cost = P 220 000 salvage value of the equipment after three years = P8000
Q: What is meant by the term equal service alternative?
A: The equal service alternative refers to the projects that have the same life time.
Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain…
A: Investment cost = $2500000 Salvage value = $50000 Per year revenue = $500000 Time period = 15 years…
Q: EncryptCo has two possible plans for accumulating money for capital projects. One plan is to save…
A: Compounding basically refers to an asset's ability to generate returns that are then reinvested or…
Q: An investment of RM50,000 can be made in a project that will produce a uniform annual revenue of…
A: The present worth method includes converting all the future cash flows into present value. If the…
Q: restaurant owner is trying to decide between two different garbage disposals. A regular steel (RS)…
A:
Q: Find the capitalized cost of a present cost of $350,000, annual costs of $35,000, and periodic costs…
A: A capitalized cost is an expense added to the cost basis of a fixed asset on a company's balance…
Q: A company uses a type of truck which costs P2M, with life of 3 years and a final salvage value of…
A: Salvage value is the assessed book value of a resource after deterioration is finished, in light of…
Q: Alternative R has a first cost of $100,000, annual M&O costs of $50,000, and a $20,000 salvage…
A: Let x = M & O costs Performing an incremental cash flow:
Q: Transformers for underground works were planned to be provided. Type A has an initial cost of…
A:
Q: Draw cash flow diagrams with symbols. Show your work using conversion factor notations. You need…
A: The worth of money in the present is considered to be more as compared to the future due to various…
Q: A company must relocate one of its factories in three years. Equipment for the loading dock is being…
A: original cost (C0) = 20,000 salvage value (Cn) = 8000 Rate of return (i) = 10% =0.10 Number of years…
Q: The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $1.7 million.…
A: The capitalized cost can be calculated as follows:
Q: A consulting engineering firm’s CFO wants to purchase either Ford Explorers or Toyota 4Runners for…
A: (a) The first cost for the alternative F (FF) is $30,900. The first cost of alternative T (FT) is…
Q: The PW-based relation for the incremental cash flow series to find A/ between the lower first-cost…
A: The minimum acceptable rate of return is the rate showing the minimum profit that an investor…
Q: After you have conducted a future worth comparison of alternatives, what do you multiply the FW…
A: If future worth FW is converting into annual worth AW, then it needs to be multiplied by the…
Q: Rent-A-Wreck car rental agency has a contract with PM Warranty, Inc. to do major repairs for $700…
A: Break-even is a point where the firm earns no profit no loss. When two options are compared, the…
Q: The PW-based relation for the incremental cash flow series to find Δi* between the lower first-cost…
A: The incremental rate of return can be calculated using the spreadsheet function as follows:
Q: ABC Technologies,Inc is evaluating two alternatives to produce its new plastic filament with…
A: The answer is given below
Q: Maize Farmer's Co. is considering two parent seed variety for its production of drought resistant…
A: Given information Seed X Initial cost=Php66000 Annul cost=Php 36000 Seed Y Initial cost=Php105000…
Q: An Engineer has acquired a dump truck for Php 750,000. It is expected that the new truck will…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace…
A: Given; Original purchase price= $700000 Operating cost has averaged= $250000 Selling price of…
Q: The PW-based relation for the incremental cash flow series to find A/"between the lower first-cost…
A: MARR stands with minimum acceptable rate of return on which means that this is the index which…
Q: The manager of a canned-food processing plant has two labeling machine options. On the basis of a…
A: Table 1 shows the cash flow.
Q: The cost of painting the public bridge is $4000. If the bridge is painted now and every 2 years,…
A: Capitalized Costs are considered those costs which are mostly long-term like fixed assets building…
Q: An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the…
A: The rate of return on investment can be calculated by the following formula : R= Net ProfitCost of…
Q: A company plans to finance a large project that will last 5 years. The company will borrow $480,000…
A: minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of…
Q: Q5-) A regional infrastructure building and maintenance contractor must decide to buy a new compact…
A: Inflation refers to a rise in the average level of price of goods and service in the economy. A…
Q: Advanced Modular Technology (AMT) makes energy cleaner, safer, more secure and more efficient. It…
A: Internal Rate of Return (IRR) is defined as the minimum amount of return which an investor requires…
Q: Fairmont Industries primarily relies on 100% equity financing to fund projects. A good opportunity…
A: The weighted average cost of capital addresses the typical expense to draw in financial backers,…
Q: The first cost of a certain piece of equipment is Php50,000. It will have an annual operating cost…
A: In economics, present value refers to the current value of the future stream of cash flow. Future…
Q: An industrial engineer is considering two robots for purchase by a fiber-optic manufacturing…
A: Future value can be calculated as follows.
Q: The three elements namely incremental cash flow series, LCM, and multiple roots-are considered…
A: False In engineering economy, through using the analysis of the three elements to evaluate…
Q: U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…
A:
Q: US. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex,…
A: here we calculate the amount company made annually by using the given information , so the…
Q: The capitalized cost of $ 10,000 , every 5 years forever, starting now at an interest rate of 10%…
A: here we calculate the Capitalized Cost=EUAC(M) by using the formula which are as follow-
Q: the cost of painting the golden gate bridge is $400000. if the bridge is painted now and every years…
A: here we can calculate the capitalized cost of painting at an interest rate of 6% per year as follow…
Q: You purchased a building five years ago for $200,000. Its annual maintenance expense has been…
A: MARR=8%Building cost= $200000maintenance cost= $15000 for 5 yearsRoof repair= $55000therefore,…
Q: Decision D6, which has three possible choices (X, Y, or Z), must be made in year 3 of a 6-year study…
A:
Q: • Smalltown, PA currently has a $38,000/year contract with a private company to transport students…
A: Given Bus cost = 40000 Revenue = 38000 annual maintenance = 25000 $ time = 5 years MARR = 10% As…
Step by step
Solved in 2 steps
- An asphalt pavement costing PHP 100,000 which would last for 5 years with negligible repairs. At the end of 5 years, PHP 5,000 would be spent to remove the old surface before PHP 100,000 is spent again for new surface. A thick concrete pavement costing PHP 250,000 for minor repairs at the end of every years. Money is worth 8% compounded annually. Determine the capitalized cost for the asphalt pavement. and Find out the Capitalized cost for the asphalt pavementThe PW-based relation for the incremental cash flow series to find Δi* between the lower first-cost alternative X and alternative Y has been developed. 0 = − 40,000 + 9000(P∕A,Δi*,10) − 2000(P∕F,Δi*,10) Determine the highest MARR value for which Y is preferred over X. Write the single-cell spreadsheet function that displays Δi*.Present Worth and Capitalized CostA restaurant owner is trying to decide between two different garbage disposals. A regular steel (RS) disposal has an initial cost of P3500, a life of 4 years and a maintenance cost of P100 at the end of the second year. The alternative is a corrosion-resistant disposal constructed primarily of stainless steel (SS). The initial cost of SS disposal is P6000, but it is expected to last for 6 years. Because the SS disposal has a slightly larger motor, it is expected to cost about P200 per year to operate. The salvage value of SS disposal is expected to be P500 at the end of 6 years. If the interest rate is 15% per year compounded quarterly. (a.) Draw the cash flow diagram. (b.) Which disposal should be selected?
- EncryptCo has two possible plans for accumulating money for capital projects. One plan is to save $100,000 per year, independent of growth. The second plan is to start with $80,000 per year and increase the annual contribution by 5% each year. The money will accumulate interest at 4% nominal annual, compounded quarterly. Which plan will have more money after 10 years?Charlie’s Truck Repair and Service has a new contract that requires him to purchase and maintain new equipment for work on 18-wheeler trucks and heavy road equipment. Two separate vendors have made quotes and estimates for Charlie. Use the estimates and 6% per year return requirement to find the better economic option. One problem is that Charlie does not currently know if the contract will last for 5, 8, or 10 years. He needs a recommendation for all three time periods. Table 1. Economical alternatives offered by VendorsYou purchased a building five years ago for $200,000. Its annual maintenance expense has been $15,000 per year. At the end of three years, you spent $55,000 on roof repairs. At the end of five years (now), you sell the building for $250,000. During the period of ownership, you rented out the building for $60,000 per year paid at the beginning of each year. If your MARR is 8% per year. a) Use the PW and AW methods to evaluate this investment. b) Calculate IRR and ERR(( Ԑ=MARR). (Upload the picture of your complete solutions including the correct cash flow diagram and your conclusion.)
- You purchased a building five years ago for $200,000. Its annual maintenance expense has been $15,000 per year. At the end of three years, you spent $55,000 on roof repairs. At the end of five years (now), you sell the building for $250,000. During the period of ownership, you rented out the building for $60,000 per year paid at the beginning of each year. If your MARR is 8% per year. a) Use the PW and AW methods to evaluate this investment. b) Calculate IRR and ERR(( Ԑ=MARR). include the cash flow diagram and conclusionOnly typed answer Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is planning to build a new stadium that will cost $360 million. The annual upkeep is expected to amount to $850,000. The turf will have to be replaced every 13 years at a cost of $980,000. Painting every 7 years will cost $97,000. If the city expects to maintain the facility indefinitely, what is the estimated capitalized cost at i = 9% per year? The estimated capitalized cost is $_______The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of I-10. Design 2B will cost $3 million to install and $125,500 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per year to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year and a 20-year project period. The rate of return is Not attempted ______%.
- The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $1.7 million. Resurfacing and other maintenance are expected to cost $350,000 every 3 years. What is the capitalized cost of the road at an interest rate of 6% per year?A delivery truck has a book value of $10,000 in year 5. The purchase price of the truck is $30,000. If the minimum acceptable rate of return is 10%, what is the equivalent annual capital cost of the truck in year 7?Alternative R has a first cost of $100,000, annual M&O costs of $50,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $40,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 20%. Solve (a) by hand, and (b) using the Goal Seek tool or RATE function on a spreadsheet.