The ABC Transportation estimates the cost of upgrading a highway to be $85 million now. Resurfacing and other maintenance will cost $550,000 every 3 years. Annual revenue is expected to be average $18.5 million. If i = 8% per year

Q: The construction cost of a permanent water park is $550,000. Annual maintenance and operation costs…

A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the other…

Q: How much money will be available for the project in  41/2 years?  (Round your answer to the nearest…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

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A: Annual net cash flows is calculated as the difference between the annual cash flows and cash…

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A: We are given the costs of an alternative to construct a new bridge.  The initial construction cost…

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A: Capitalized cost is the total cost to be incurred in a project. Given: Initial cost = $ 3million…

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A: MACRS is a depreciation method which has highest depreciation in the early years of asset’s life. An…

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A: Termination cash flow is the final net cash flow that occurs at the end of the project. It is the…

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A: Present value is the current worth of the cash flow at a certain arte of interest and period of…

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A: Equivalent annual worth  The annual cost of owning and sustaining an asset is determined by dividing…

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A: Purchase price  = 800,000 Annual cost = 20,000 Salvage value = 300,000 Period = 5 Years Interest…

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A: Capital investment decisions are taken by the management of the company by making proper evaluations…

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A: The breakeven revenue is the revenue that is equal to annual operating and financing cost.

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A: Capitalized cost is referred to as the present worth of the cash flows, which usually go for an…

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A: Given,  Annual Cost =$400 million Rate =2% Time = 10 years and 50 years

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A: Capitalized cost refers to the present worth of cash flows that go on for an infinite period of…

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A: In the given question we need to calculate the Net Present Value (NPV) of investment. Net present…

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A: The payback period is the amount of time it takes to recover the initial cash outflow. The NPV is…

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A: Given information: Construction cost of a bridge is $10,000,000, Annual maintenance cost is…

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A: Calculate the capitalized equivalent of the perpetual annual maintenance costs as follows:

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A: Increase in earning per year = $ 20,000 Period = 10  Years Increase in expenses = $ 2000 Annual…

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A: Payback period is the amount or time period within which initial investment amount can be recovered.

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A: Capital investment project are the one in which capital is invested to receive required gains in…

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A: The Payback period, one of the techniques of capital budgeting that ignores the concept of the time…

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A: Definition: Annual rate of return method: Annual rate of return is the amount of income that is…

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A: Initial investment =  115,042 Annual dollar savings = Savings in electricity consumption * cost per…

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A: Data given: Initial cost =$ 30,000,000 Resurfaced cost = $1000,000 ( every 5 year) Annual inspection…

Q: The Rustin Transportation Planning Board estimates the cost of upgrading a 4-mile section of 4-lane…

A:

Q: The Highway Department expects the cost of maintenance for a piece of heavy construction equipment…

A: The formula used as follows: Present worth=FV1+rn

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A: First cost (C) = Php 10,000,000,000 Annual maintenance cost (A) = Php 35,000,000 Reconstruction cost…

Q: A new project will cost $40,000 to fund today, and an additional $40,000 next year.  The device…

A: Net Present Value: It helps in analyzing the project's profitability and is computed from the…

Q: per year for the first 10 years and $1000 per year, for the 10 years past the initial maintenance…

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A: Annual revenue is $114,500. Annual variable cost is $73,600. Annual fixed cost is $14,000. Annual…

Q: A gym owner is considering opening a location on the other side of town. The new facility will cost…

A: Given, Cost = $1.38 million  Annual Sales =  $541,000

Q: The capital investment for a new highway paving machine is $950,000. The estimated annual expense,…

A:

Q: The required investment cost of a new, large shopping center is $50 million. The salvage value of…

A: Cost of a shopping center= $50 million Salvage value of the project= $20 million Project’s life= 15…

Q: The Geo-Star Manufacturing Company is considering a new investment in a punch-press machinethat will…

A: Capitalized cost refers to the present worth of all the total cost of a project which goes on for an…

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A: Present value (PV) measures how much money is need to be invested now in order to finance upcoming…

Q: A project requires an initial investment of $150,000, to be depreciated straight-line over 3 years…

A: Given Data: Project cost $1,50,000.00 Life(years) 3 Revenue $1,50,000.00 Expenses $ 85,000…

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A: Period Cash Flow showing calculation of cumulative cash flow Cumulative Cash Flow 0 ($50,000)…

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A: Equivalent Capitalized Costs: When recurring costs are expected to be incurred at fixed intervals,…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.