What is the capitalized cost of a structure that will require construction cost of P1,000,000 immediately and P800,00 each year for the next 4 years and annual year –end maintenance of P36,000 plus the expenditure of P200,000 an the end of each 10-year period for replacement? Assume 12% interest rate.

Q: The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60,000 per…

A: The equivalent annual cost of maintenance (EAC) is the annual cost of maintaining an asset over its…

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: A project has a first cost of $75,000, operating and maintenance costs of $10,000 during each year…

A: Present value of annual cashflows is given by, PV = E x AF = E x (1-(1+r)-n )/r  Where E = cashflows…

Q: Expenses for water treatment plant are expected to be $220,000 now, $110,000 in year one, and…

A: Annualised cost is cost of current year and interest cost of perpetual cost.

Q: Determine Annual worth values

A: Annual worth (AW) method is for evaluating the alternatives or investment proposals. It is the…

Q: An equipment is expected to cost PKR 200,000 to be used for 3 years, and to have an annual operating…

A: Annual worth refers to the estimated income and expenses that can be incurred during the life cycle…

Q: Determine the capitalized cost of a project that cost P324,000 with an anticipated salvage value of…

A: Given That: Fixed Cost=Replacement Cost=P324000 i=8%=0.08 Salvage Value=P50000 Maintenance…

Q: The DPWH expects the cost of maintenance for a particular piece of heavy equipment to be P 50,000 in…

A: Present worth (PW) is a sum of PV of all the cashflows. Discounting is a technique which is used to…

Q: Maintenance costs for a new bridge with an expected 50-year life are estimated to be P 1,000 each…

A: An equivalent uniform annual cost analyzes the varying costs of a project over a period of time with…

Q: Determine the capitalized cost of an alternative that has a first cost of $55,000 an annual…

A: First cost = $ 55000 Annual cost = $ 12000 Cost every 5 years = $ 20,000 Annual interest rate = 11%

Q: Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an…

A: Given, Initial Cost = Php 3,000,000 Additional Cost= Php 1,000,000 n = 10 years P (A) = Php 100,000…

Q: Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional…

A: Initial Cost = P8,000,000 Additional Cost = P250,000 every 8 Year Annual operating costs = P150,000…

Q: 3% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include…

A: An item of expenditure on a capital asset that brings back the asset to its working position is…

Q: A bridge that was constructed at a cost of ₱75,000,000 is expected to last 30 years, at the end of…

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

Q: What is the interest earned on a project that requires an initial investment of $ 10,000 and…

A: Initial investment (PV) = $ 10,000 Future value (FV) = $ 20,114 Period (n) = 5 Years

Q: used. If the desired after-tax return on investment is 10% per year, which de should be chosen?…

A: The net present value is the difference between the present value of cash flow and initial…

Q: Calculate the capitalized cost of a project with a P3,000,000 beginning an extra P850,000 investment…

A: Capitalized cost would be present value of all cost that are going to occur in future course of time…

Q: onsider the following project. Costs: $100,000, at time t = 0. $45,000, at time t = 4. Income: Three…

A: The question is based on the concept of calculating the future value of cash flows in a project at…

Q: A newly constructed bridge costs $10,000,000. The same bridge is estimated to need renovation every…

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

Q: culate the capitalized cost of a project th: nitial cost of P3,000,000 and an additiona P1,000,000…

A: A capitalized cost refers to the cost which is summed up to the cost basis of a fixed asset of the…

Q: Calculate the capitalized cost of a project with a P3,000,000 beginning cost and an extra P850,000…

A: Capitalized cost would be present value of all cost that are going to occur in future course of time…

Q: A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs…

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

Q: Calculate the capitalized cost of a project that has an initial cost of 3M and an additional…

A: Initial cost =3000000Additional cost=1000000N=10 yearsOperating cost:PA=P100000 for 4…

Q: Determine the capitalized cost of the building that is worth P50M, with maintenance cost of…

A: First cost (C) = P 50 million Annual cost (A) = P 15000 for 5 years, P 20000 afterwards Once in 5…

Q: A project is estimated to cost P110,000, last 8 years and have a P15,000 salvage value. The annual…

A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)

Q: A special-purpose machine toolset would cost $30.000. 1l1e entire capitalexpenditure ($30.000) is 10…

A: Computation of the net present worth of this project is shown as follows:

Q: (a) Declining balance method, (b) DDB method, (c) sinking fund method g iven interest rate at 12.5…

A: Since this is multi- part question, we are going to solve only first three parts for you. To get the…

Q: A bridge with an initial cost of P50,000,000 has a life of 20 years. The bridge must be partially…

A: In this we have to calculate present value of all cost.

Q: calculate the capitalized cost of a project that has an initial cost of 8 000 000 and an additional…

A: Initial Cost= 80,00,000 Additional Cost =250,000 n=8 Operating cost for first 5 years= 150,000…

Q: A project has a first cost of $75,000, operating and maintenance costs of $10,000 during each year…

A: First cost (C) = $75000 Annual cost (A) = $10000 n = 8 years Salvage value (S) = $15000 r = 12%

Q: Calculate the capitalized cost of a project with a P3,000,000 beginning cost and an extra P850,000…

A: Capitalized cost would be present value of all cost that are going to occur in future course of time…

Q: A water Reservoir will have a first cost of Php 10,000,000,000, an annual maintenance cost of…

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

Q: At 6%, find the capitalized cost of a bridge whose cost is P250M and life is 20 years, if the bridge…

A: Capitalized costs are incurred on the purchase of fixed assets. These costs are recognized over a…

Q: A PROJECT IS ESTIMATED TO COST P 100,000.00, LASTS 8 YEARS, AND HAVE A P 10,000.00 SALVAGE VALUE.…

A: Investment income includes interest charges, dividends, capital appreciation earned from the sale of…

Q: Calculate the capitalized cost of a project

A: Capitalized value is an cost on a hard and fast asset. This type of asset is incurred on cot basis…

Q: What is the capital recovery cost for a machine costing $504,000 with a life of 9 years and a…

A: Capital recovery or equivalent annual cost =(P-S)(A/P,i,n) + S*I  , Where, P = investment S-…

Q: E. The year-end operating and maintenance costs of a certain machine are estimated to be P4,800 the…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A building cost P8.5 million and the salvage value is P50,000 after 23 years. The annual maintenance…

A: The present worth analysis is an analysis where all the present values are calculated. All the…

Q: Determine the Total Capital cost of a facility project with initial infrastructure cost of…

A: Present value Concept: The money having today has greater value than receivable in future.

Q: Maintenance cost for small bridge with an expected 50 year life are estimated to be $10,000 each…

A: The annual cost of owning, operating, and maintaining an asset over its entire life is known as the…

Q: Determine the amount needed now to purchase a machine for P100,000, provide an annual fund of…

A: Initial cost of machine = P 100,000 Annual cost = P 15,000 Life of machine = 10 Years Discount rate…

Q: 4. Determine the capitalized cost of a research laboratory that requires P5M for original…

A: I am answering the first question as per bartleby guidelines. Please re-submit the remaining…

Q: An initial capital of $25,000 was put up for a new project that will produce an annual income of…

A: Initial Capital = 25000 Annual Income = 8500 Time Period(N) = 5 years Salvage Value = 1000 Annual…

Q: For the following project, compute an EAA: Project A requires you an upfront payment of $262,782 and…

A: The equivalent annual annuity approach is the method of capital budgeting that evaluates the…

Q: Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an…

A: Initial Cost = 3,000,000 Additional Investment = 1,000,000 every 10 years Recurring Rework Cost =…

Q: Calculate the capitalized cost of a project that has an initial cost of P3,000,000 and an additional…

A: Financial Management- Financial management refers to the process of controlling of the sources of…

Q: A bridge that was constructed at a cost of P75,000,000 is expected to last 30 years, at the end of…

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

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.