With an interest rate of 15%, CREATE A CASHFLOW DIAGRAM and CALCULATE THE CAPITALIZE COST of a project with a Php 3,000,000.00 original cost and an extra Php 100,000.00 cost per 10 years. For the first four years, the yearly running cost will be Php 100,000.00, then Php 160,000.00. A substantial rework cost of Php 300,000.00 is also projected every 13 years. (Note: Answer in this sequence. GIVEN > REQUIRED > CASHFLOW DIAGRAM > SOLUTION > CONCLUSION OF FINAL ANSWER. CASHFLOW DIAGRAM IS REQUIRED)

With an interest rate of 15%, CREATE A CASHFLOW DIAGRAM and CALCULATE THE CAPITALIZE COST of a project with a Php 3,000,000.00 original cost and an extra Php 100,000.00 cost per 10 years. For the first four years, the yearly running cost will be Php 100,000.00, then Php 160,000.00. A substantial rework cost of Php 300,000.00 is also projected every 13 years. (Note: Answer in this sequence. GIVEN > REQUIRED > CASHFLOW DIAGRAM > SOLUTION > CONCLUSION OF FINAL ANSWER. CASHFLOW DIAGRAM IS REQUIRED)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 6E

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An electric cooperative is considering the use of a concrete electric pole in the expansion of its power distribution lines. A concrete pole costs Php 18,000.00 each and will last 20 years. The company is presently using creosoted wooden poles which cost Php 12,000.00 per pole and will last 10 years. If money is worth 12%, which pole should be used? Assume annual taxes amount to 1% of first cost and zero salvage value in both cases.
Heavy Motors is taking a look at a new product line that will take a few years to create. New lab equipment would cost Php 10 million initial investment, and salaries and other expenses will total Php 15 million each year for the next four years. The new product revenues begin in year 6 and average Php 15 million per year for the rest of the study period. Is this a good venture for Heavy Motors? use a 12% MARR and a 20-year time period? Use the following method to support your recommendation (Future Worth and ERR - use Є = 12%). Compute for the future worth and ERR(i)
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Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an additional investment cost of Php 1,000,000 at the end of every 10 years. The annual operating cost will be Php 100,000 at the end of every year for the first four years and Php 160,000 thereafter. In addition, there is expected to be recurring major rework cost of P300,000 every 13 years. Assume i= 15%. CC = Php 5,345,234.576 CC = Php 4,546,378.987 CC = Php 5,678,435.897 CC = Php 4,281,935.961
Calculate the capitalized cost of a project that has an initial cost of P3,500,000 and an additional cost of P1500, 000 at the end of every 10 yrs. The annual operating costs will be P150, 000 at the end of every year for the first 5 years and P180, 000 thereafter. In addition, there is expected to be recurring major rework cost of P400, 000 every 13 yrs. Assume i =18% a.Php 4,467,564.367 b.Php 5,673.467.567 c.Php 5,534,673.123 d.Php 4,813,109.563
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Given four proposals for funding a new project with a 100M limit on capital funding and the MARR is established at 12% per year. Project First Cost Estimated Annual Savings Project Life, Years W 12M 5M 3 X 25M 7.3M 4 Y 45M 12.1M 6 Z 60M 9M 8 Use the exact internal rate of return method to determine which of the four independent projects should be funded. Write the value of the acceptable project accordingly/in sequence (W/X/Y/Z). ANSWER for ALTERNATIVE 1: Blank 1 ANSWER for ALTERNATIVE 2: Blank 2
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An industrial park is being planned near a river. The river occasionally floods, and as a result theindustrial park planners are trying to decide how large of an embankment to build as protection. Theembankment is expected to last 50 years. The MARR is 12%. If the water rises above theembankment (regardless how much) and flooding occurs, the cost is $300,000. Using the data below,find the expected annual costs in each case and determine which embankment height should beselected.Embankmentheight(meters)Initial Costof EmbankmentProbability of water rising aboveembankment in any given year2.0 $100,000 0.3302.5 $165,000 0.1253.0 $300,000 0.0403.5 $400,000 0.0204.0 $550,000 0.01 Please attach an actual excel file too.
A piece of new equipment has been proposed by engineers to increase theproductivity of a certain manual welding operation. The investment cost is$25,000, and the equipment will have a market value of $5,000 at the endof a study period of five years. Increased productivity attributable to theequipment will amount to $8,000 per year after extra operating costs havebeen subtracted from the revenue generated by the additional production.A cash-flow diagram for this investment opportunity is given below. If thefirm’s MARR is 20% per year, is this proposal a sound one? Use the PWmethod.