What is the capitalized cost of a structure that requires an initial investment of P1,500,000.00 and an annual maintenance of P150,000.00 with an interest of 15%.
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- Determine the capitalized cost of a research laboratory which requires P5,000,000 for original construction; P100,000 at the end of every year for the first 6 years and then P120,000 each year thereafter for operating expenses, and P500,000 every 5 years for replacement of equipment with interest at 12% per annum.Determine the capitalized cost of a research laboratory which requires Php 4,500,000 for original construction: Php 110,000 at the end of every year for the first 6 years and then Php 130,000 each year thereafter for operating expenses, and Php 600,000 every 7 years for replacement of equipment with interest at 12% per annum? CC = Php 5,996,693.866 CC = Php 8,123,567.369 CC = Php 7,876,854.896 CC = Php 6,987,693.311At 20% cpd. monthly., find the capitalized cost of a bridge whose cost is P673777 with a life of 22 years, if the bridge must be rehabilitated at a cost of P218341 at the end of each 22 years.
- You are faced with making a decision on a large capital investment proposal. The capital investment amount is $640,000. Estimated annual revenue at the end of each year in the eight year study period is $180,000. The estimated annual year-end expenses are $42,000 starting in year one. These expenses begin decreasing by $4,000 per year at the end of year four and continue decreasing through the end of year eight. Assuming a $20,000 market value at the end of year eight and a MARR = ε =12% per year, answer the following questions. Using AW, determine whether this proposal is acceptable. What is the ERR of this proposal? Is it acceptable? What is the IRR of this proposal? Is it acceptable? What is the simple and discounted payback period for this proposal?Calculate the capitalized cost of a project that has an initial cost of P3500000 and an additional investment cost of P950000 at the end of every 8 years. The annual operating cost will be P120000 at the end of every year for the first 5 years and P150000 thereafter. In addition there is expected to be a replacement cost of P350000 every 12 years. The interest rate is 12%. Also show the cash flow diagram.DRAW CASH FLOW DIAGRAM Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional cost of P250,000 at the end of every 8 years. The annual operating costs will be P150,000 at the end of every year for the first 5 years and P200,000 thereafter. In addition there is expected to be recurring major rework cost of P500,000 every 13 years. Assume i=12%
- What is the capitalized worth of a project that has an indefinitely long study period and dollar cash flows that repeat as shown in the following figure. The interest rate is 15% per year.A proposed project will require the immediate investment of $50,000 and is estimated to have year-end revenues and costs as follows: Year Revenue Costs 1 2 3 4 5 $ 75,000 90,000 100,000 95,000 60,000 $ 60,000 77,500 75,000 80,000 47,500 An additional investment of $20,000 will be required at the end of the second year. The project would terminate at the end of the 5th year, and the assets are estimated to have a salvage value of $25,000 at the time. Solve for the IRR of the project by PW using 15% and 16% rates. A. 15.68% B. 15.28% C. 15.88% D. 15.48%A COMPANY IS CONSIDERING CONSTRUCTING A PLANT TO MANUFACTURE A PROPOSED NEW PRODUCT. THE LAND COSTS P300,000, AND THE BUILDING COSTS P600,000, THE EQUIPMENT COSTS P250,000 AND P100,000 ADDITIONAL WORKING CAPITAL IS REQUIRED. IT IS EXPECTED THAT THE PRODUCT WILL RESULT IN SALES OF P750,000 PER YEAR FOR 10 YEARS, AT WHICH TIME THE LAND CAN BE SOLD FOR P400,000, THE BUILDING FOR P350,000 AND THE EQUIPMENT FOR P50,000. ALL OF THE WORKING CAPITAL WOULD BE RECOVERED AT THE END OF YEAR 10. THE ANNUAL EXPENSES FOR LABOR, MATERIALS, AND ALL OTHER ITEMS ARE ESTIMATED TO TOTAL P475,000. IF THE COMPANY REQUIRESS MARR OF 15% PER YEAR ON PROJECTS OF COMPARABLE RISK, DETERMINE IF IT SHOULD INVEST IN THE NEW PRODUCT LINE. EVALUATE USING ALL METHODS: A. RATE OF RETURN METHOD (RR) B. ANNUAL COST METHOD C. ANNUAL WORTH METHOD
- Compute the capitalized cost of a new car worth P800,000.00 if it is estimated that it requires P20,000.00 per year to maintain and must be replaced at the same amount with a salvage value of P300,000.00 after 5 years if the interest rate is 12% per annum. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The American Pharmaceutical Company (APC) has a policy that all capital investments must have a five-year or less discounted payback period in order to be considered for funding. The MARR at APC is 9% per year. Is the above project able to meet this benchmark for funding? What is the payback period?The City of Manila contemplates to increase the capacity of its existing water transmission line. Two plans are under consideration. Plan A requires the construction of a parallel pipe line, the flow being maintained by gravity. The initial cost is P2,750,000 and the life is 40 years, with an annual operating cost of P50,000. Plan B requires the construction of a booster pumping station costing P1,050,000 with a life of 40 years. The pumping equipment costs an additional amount of P250,000. It has a life of 20 years and a salvage value of P25,000. The annual operating cost is P165,000. If the interest rate is 12%, which is the more economical plan and by how much lower than the other? Plan B lower than Plan A by P115,906.57 Plan B higher than Plan A by P15,906.57 Plan A higher than Plan B by P15,906.57 Plan A lower than Plan B by P115,906.57