The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60.000 per year for the next 5 years, cost of overhaul at the end of the 5th and 8th year is P140,000. Find the equivalent uniform annual cost of maintenance if mone
The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60.000 per year for the next 5 years, cost of overhaul at the end of the 5th and 8th year is P140,000. Find the equivalent uniform annual cost of maintenance if mone
Chapter1: Making Economics Decisions
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The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60.000 per year for the next 5 years, cost of overhaul at the end of the 5th and 8th year is P140,000. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually.
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![A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000 and is
expected to last 7 years. The maintenance cost is expected to be high at $2000 the first year, increasing by 11%
per year thereafter. Determine the equivalent present worth of the modification and maintenance cost by hand
at 8% per year.
Answer:
PoTotal
[!]]
$ 2K(1.11)
$ 2K(1.11)²
$2K(1.11)³
Answer:
$ 5K
$2K
w = Blank 1 : show in four decimal
PoTotal = $ Blank 2
F7Total / PoTotal = $ Blank 3
A/P0Total = $ Blank 4
$2K(1.11)4
$ 2K(1.11)5
$ 2K(1.11)6
Note: Do not round in between solution. No need to put UOM and comma. Final answer round to the nearest WHOLE NUMBER.
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Transcribed Image Text:A coal-fired power plant has upgraded an emission control valve. The modification costs only $5,000 and is
expected to last 7 years. The maintenance cost is expected to be high at $2000 the first year, increasing by 11%
per year thereafter. Determine the equivalent present worth of the modification and maintenance cost by hand
at 8% per year.
Answer:
PoTotal
[!]]
$ 2K(1.11)
$ 2K(1.11)²
$2K(1.11)³
Answer:
$ 5K
$2K
w = Blank 1 : show in four decimal
PoTotal = $ Blank 2
F7Total / PoTotal = $ Blank 3
A/P0Total = $ Blank 4
$2K(1.11)4
$ 2K(1.11)5
$ 2K(1.11)6
Note: Do not round in between solution. No need to put UOM and comma. Final answer round to the nearest WHOLE NUMBER.
...
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