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.
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- P1,000,000.00 pesos is needed at the end of each year to maintain each building in Rizal Technological University in Mandaluyong. If money increases at 12% per annum in a investment, how much money need to invest directly so the local government of Mandaluyong can reduce the annual cost by P250,000? *A road requires no upkeep until the end of 3 years when P100,000 will be needed for repairs. After this, P80,000 will be needed for repairs at the end of each year for the next 6 years, then P130,000 at the end of each year for the next 6 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 15-year period? Kindly anwer this engineering economy problem. Thank you2. A new machine is expected to cost Php 300, 000 and have a life of 5 years. Maintenance costs willbe Php 75, 000 the first year, Php 85, 000 the second year, Php 95, 000 the third year, Php 105,000 the fourth year, and Php 115, 000 the fifth year. To pay for the machine, how much should bebudgeted and deposited in a fund that earns 9% per year, compounded annually? Not solve in excel works.
- 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%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?A newly constructed bridge costs $10,000,000. The same bridge is estimated to need renovation every 10 years at a cost of $1,000,000. Annual repairs and maintenance are estimated to be $100,000 per year.(a) If the interest rate is 5%, determine the capitalized-equivalent cost of the bridge.{b) Suppose that the bridge must be renovated every 15 years, not every10 years. What is the capitalized cost of the bridge if the interest rate is thesame as in (a)?(c) Repeat (a) and (b) with an interest rate of 10%. What can you say about the effect of interest on the results?
- 9. Maintenance of a small building amount to P 100,000 every year for the next 5 years and will increase to P 150,000 the next years thereafter. If money is worth 6% per year, how much could be invested now to take care of the building maintenance?3. A piece of machinery has an initial cost of P40,000 and results in an increase in annual maintenance costs of P2,000. If the machinery saves the company P10,000 per year, in how many years will the machinery pay for itself if compounding is considered ? (i = 7%) choices: 10 years 8 years 9 years 7 yearsA new machine can be purchased for $1,500,000. It will cost $45,000 to ship and $55,000 to install the machine. The new machine will replace an older machine that is fully depreciated and will be sold for $125,000. The firm’s income tax rate is 40%. What is the initial outlay (IO) for the new machine? $1,525,000 $1,600,000 $1,675,000 $1,725,000
- 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?The capital investment for a new highway paving machine is $950,000. The estimated annual expense, in year zero dollars, is $92,600. This expense is estimated to increase at the rate of 5.7% per year. Assume that f = 4.5%, N = 7 years, MV at the end of year 7 is 10% of the capital investment, and the MARR (in real terms) is 10.05% per year. What uniform annual revenue (before taxes), in actual dollars, would the machine need to generate to break even?A concrete pavement on a street would cost 10000 and would last for 5 years with a negligible repairs. At the end of each years. 1000 would be spent to remove the old surface before 10000 is spent again to lay a new surface. Find the annual cost of the pavement a 5%.