To maintain an asphalt road in Davao City, P5,000 will be required at the end of three years and annually thereafter. If the money is worth 8%, determine the capitalized cost of all future maintenance.
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- A second hand boiler is purchase in the amount of ₱ 210,000 with a useful life of 5 years and asalvage value of ₱ 20,000, compute its capitalized cost if interest is 15% compounded annually.Deere Construction just purchased a new track hoe attachment costing $12,500. The CFO, John,expects the implement will be used for five years when it is estimated to have a salvage value of$4,000. Maintenance costs are estimated to be $0 the first year and will increase by $100 eachyear thereafter. If a 12% interest rate is used, what is the equivalent uniform annual cost of theimplement?Use Formula, not the table. Your company is environmentally conscious and is looking at two heating options for a new researchbuilding. What you know about each option is below, and your company will use an annual interest rate of 8%for this decision: Gas Heating Option: The initial equipment and installment of the natural gas system would cost $225,000 rightnow. The maintenance costs of the equipment are expected to be $2,000 per year, starting next year, for eachof the next 20 years. The energy cost is expected to be $5,000, starting next year, and is expected to rise by 5%per year for each of the next 20 years due to the price of natural gas increasing. Geothermal Heating Option: Because of green energy incentives provided by the government, the geothermalequipment and installation are expected to cost only $200,000 right now, which is cheaper than the gas lines.There would be no energy cost with geothermal, but because this is a relatively newer technology, themaintenance costs…
- A local county is considering purchasing somedump trucks for the trash pickups. Each truck will cost$55,000 and have an operating and maintenance costthat starts at $18,000 during the first year and increasesby $3,000 per year thereafter. Assume the salvagevalue is $12,000 at the end of 5 years and the interestrate is 10%. To meet the equivalent annual cost of owning and operating each truck over 5-year planning horizon, what is the required annual trash collection fees?A concrete pavement on a street would cost 10,000 and wouldlast for 5 years with negligible repairs. At the end of each 5years, 1,000 would be spent to remove the old surface before10,000 is spent again to lay a new surface. Find the capitalizedcost of the pavement at 5%.A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $58,548, maintenance costs that start at $5,000 at end-of-year (FOY) one and increase by $1,000 for each of the next four years, and then remain constant for the following five years; savings of $20,007 per year (EOY 1-10); and finally a resale value of $33,311 at EOY 10. If the project has a 10-year life and the firm's MARR is 10% per year, what is the present worth of the project?
- What would be the CAPITALIZED COST of $ 10,000 every 5 years forever, starting 5 years from today with 3% and 8% annual interest?, B). Support why the difference between both capitalized costs.What is the future value of $4500 per year for 10 years invested at 5%? * a. $56,600 b. $7,330 c. $45,000 d. $38,908A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr expenses (starting at the end of ar 1) for ten years. No market value if used for ten years. 1.If at the end of the sixth year, instead, the investment is sold for $1000, calculate the PW, FW and AW for a BTCF MARR of 12%. Is the investment a good one if used this way? Why?
- Engineering economy - ENGR 3322 The International Parcel Service has installed a new radio frequency identification system to help reduce the number of packages that are incorrectly delivered. The capital investment in the system is $65,000, and the projected annual savings are tabled below. The system’s market value at the EOY five is negligible, and the MARR is 18% per year. Calculate the payback period of the project. a. 2 years b. 3 years c. 4 years d. None of the choicesAn electric cooperative is considering the use of a concrete electric pole in the expansion of its powerdistribution lines. A concrete pole costs 18,000 each and will last 20 years. The company is presentlyusing creosoted wooden poles which cost 12,000 per pole and will last 10 years. If money is worth 12percent, which pole should be used? Assume annual taxes amount to 1 percent of the first cost and zerosalvage value in both cases. Determine the best alternative using: (i = 12%)a. Annual Cost (AC) Methodb. Equivalent Uniform Annual Cost (EUAC) Methodc. Present Worth Cost (PWC) Methodi need Solution of 2b, 3a, and 3b