What is the present worth of all the damages for 15 years?

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: the first cost of a machine is 50,000 and if has a depreciation of 4,500 per year. if the salvage…

A: Depreciation is decrease in value of an asset over a period of time due to use of asset in business.…

Q: An untreated electric wooden pole that will last 15 years under a certain soil condition costs…

A: Time value of money concept is used to evaluate projects in the form of various types of investment.…

Q: It costs P500,000 at the end of each year to maintain a section of Kennon Road in Baguio City. If…

A: The question is based on the concept of the present value of money. The present value is calculated…

Q: The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $3 million.…

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

Q: Compute the equivalent annual cost to own equipment with an initial investment of $54,000, yearly…

A: Equivalent annual cost (EAC) is the total annual cost of owning, operating, and maintaining an asset…

Q: Annual maintenance cost for a particular section of highway pavement are $3,000.The placement of a…

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

Q: e required investment cost of a new, large shopping center is $47 million. The salvage value of the…

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

Q: A retrofitted space-heating system is being considered for a small office building. The system can…

A: Internal rate of return is return at which present value of cash flow is initial investment of…

Q: A bowling alley costs $500,000 and has a useful life of 10 years. Its estimated MV at the end of…

A: Depreciation expense is the amortization of the asset cost over its useful life. It is debited to…

Q: Jefferson Company is considering investing $33,000 in a nev last five years and to have a salvage…

A: The expense of borrowing money is called interest expenditure. For using the lender's funds, the…

Q: An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs.…

A: As you have asked multiple questions, we will solve the first question as per the policy presented…

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: A retrofitted space-heating system is being considered for a small office building. The system can…

A: MARR = 15% Cash Flows: Year Cash Flow  0 -110,000.00 1 30,070.00 2 30,070.00 3 30,070.00…

Q: A construction company has purchased a motor for P20,000 and a generator for P8,000 to produce its…

A: Depreciation is charged on fixed tangible asset to show the asset on true and accurate value. It is…

Q: An investment in a certain project can be recovered in 10 years. The investment has no salvage…

A: Annual Cash flow =  net income before taxes - tax expense  + annual depreciation = 10000 - 10000*20%…

Q: The initial cost of a building is $ 125,358, its annual rental income will be $ 17,777 and its…

A: Given information: Initial cost : $125,358 Annual income : $17,777 Annual expenses : $8,147 Salvage…

Q: A drill press was purchased for $300,000. It was expected to last 10 years and to have a salvage…

A: Computation:

Q: XYZ Company invests $2,000,000 for a new machine. The new machine will generate an annual income of…

A: For calculation of IRR two rates are estimated with close range, in which one rate should have…

Q: A factory asset has a first cost of $100,000, annual costs of $15,000 the first year and increasing…

A: Given,  Initial cost =$100,000 Annual Costs = $15,000 increasing by 7.5%

Q: An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs.…

A: Equivalent Annual cost: Equivalent Annual cost (EAC) is the yearly expense of buying, working, and…

Q: A parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…

A: Initial cost (C) = P 250000 First year revenue (R) = P 22000 Growth rate (g) = 5% n = 10 years r =…

Q: A commercial building is proposed to be built in a subdivision. The initial cost is estimated to be…

A:

Q: A contractor is saving money for a lucrative project. The initial cost is $175,000, annual outlays…

A: To find the money to be saved, we will have to find the present value of all the expenses using 8%…

Q: The average annual cost of damages caused by flooding to a subdivision near Pasig River is estimated…

A: Time value of money is the concept widely used by the management accountant to determine the worth…

Q: The initial cost of a new machine is $10,000. The annual operating cost is $1,000/yr for first 3…

A: Equivalent uniform annual cost EUAC distributes the total cost of the project in term of annual cost…

Q: Consider a machine that costs $1000 to purchase. The machine creates an annual operating expense of…

A: Correct answer is option (d) 9 years.

Q: A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5 years.…

A: First cost (F) = P 150000 Let A = Annual saving Salvage value (S) = P 15000 n = 5 years r = 15%

Q: The operating cost of a pulverized coal cyclone furnace is expected to be $80,000 per year. The…

A: Formulas:

Q: An asphalt road requires no repairs until the end of 2 years. At the end of 3rd year, P90,000 will…

A: Here, Here, From Year 1 to Year 2, Repair cost is P0 From Year 3 to Year 7, Repair Cost is P90,000…

Q: rete pavement on a street would cost P10,000 and would last for 5 years with negligible repairs. At…

A: In a company balance sheet, capitalization costs are an addition to the cost of fixed assets.When…

Q: A new machine costs $100,000 and is expected to last 10 years. At the end of 10 years, the salvage…

A: Calculation of depreciation percentage :- The straight line depreciation rate  = 1/10 = 10% per…

Q: A semi-tractor costs $230,000. The driver of the truck plans to use the truck for 4 years, after…

A: Here, Cost is $230,000 Time Period is 4 years Salvage Value is $35,000 Cost to operate and Maintain…

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

A: The current value of a future sum of money or stream of cash flows, given a specified rate of…

Q: The Longganisa Builders Co. agreed to pay P100,000.00 for a new bulldozer with an expected life of…

A: Increase in annual earnings (A) = P 12000 r = 12% n = 20 years

Q: A construction company wishes to buy a fleet of scrapers to be used in a highway project, which will…

A: Time value of money :— According to this concept, value of money in present day is more than the…

Q: A new equipment is being considered at a local company at a cost of $200,000. The operation and…

A: Computation of EUAC for this equipment is as follows:

Q: A concrete pavement on a street would cost P10,000 and would last for 5 years with negligible…

A: Annual cost will include the cost incurred for the cost for the new pavement and cost of removing…

Q: Macoupin Mining Inc. must purchase a new coring machine that costs $60,000 and will last 15 years…

A: Information Provided: Costs = $60,000 Salvage value = $12,000 Opearting exp = $9000( first year and…

Q: ncrete pavement on a street would cost P 2M and would lasts for 3 years. Minor maintenance cost is P…

A: Capitalized cost is the present value of all cost that are going to occur during the life of road…

Q: An asphalt road requires a yearly maintenance beginning a year from now. For the 15st four years, it…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: A  machine is purchased for $6500.  It is expected to last 8 years and have a residual value of…

A: The computation as follows: Hence, the annual straight-line depreciation is $725.

Q: Dreamville Records fashioned an extension and renovation to its recording studio at Fayetteville,…

A: Using the NPER function in excel

Q: A widget manufacturing plant manager decides to purchase a new drill press with borrowed funds in…

A: Solution : Given Purchase cost of drill press 2,000,000 Operating expense for first year…

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.