6. A project has an investment cost of $10,000, uniform annual benefits of $2,400, and a salvage value of $3,000 at the end of its 10-year useful life. At 12% interest, what is the net present worth (NPW) of the project?
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- A PlayStation is advertised for $500. A credit plan is offered whereby a deposit of 20% may be paid. The rest is to be paid in equal monthly instalments over 2 years at a flat interest rate of 16% per annum. A customer chooses the credit plan. I SEON SPOM SEOM SERON (a) What is the remaining balance for the PlayStation after a deposit of 20% is paid? SEOM SEONSEO 30 Answer: $ (b) How much interest will be paid altogether? Answer: $ (c) (i) How many repayments will there be? FENOMEEN ENON SEPON SENOM SEDOM SESON SEDON SETOM SEDON SERVE to be? 60 60 60 6 6 6 6 6 6 6 Answer: (ii) What is the monthly repayment? BO Answer: $ FON (d) How much will be paid in total for the PlayStation? OXO OXO OXO OX Answer: $ WEROWEROWEROW6- An engineer has a fluctuating future budget for the maintenance of a particular machine. During each of the first 5 years, $10, 000 per year will be budgeted. During the second 5 years, the annual budget 21 will be $15,000 per year. In addition, $5000 will be budgeted for an overhaul of the machine at the end of the fourth year, and again at the end of the eighth year. What uniform annual expenditure would be equivalent, if interest is 8% per year?SHOW COMPLETE DETAILS AND SOLUTION . 4. A new civil engineer employee start a savings plan in which he saves P 10,000 eachyear for 15 years. He makes her first payment at age 22 and after paying for 15 yearsshe leaves the accumulated sum in the savings plan until she reach age 65. If thesavings plan pays 10% per year, how much will be in the savings account when sheage 65?5. Mr. Jo needs P 4,000,000 immediately to pay for a new home. Having insufficientfund for this, he borrows P 2,000,000 from an insurance company and repay the loanevery six months for 15 years, the first payment being at the end of 8 years from now.If the insurance company charged him 8% compounded semiannually, how much isthe amount of each payment?
- 4. An investment generates an annual income of $200,000 with a salvage value of $2,000,000 in 10 years. If the interest rate is 10% per year, how much should one pay for it now?Note: This is a Engineering Economic Question 3. Student C invested in Axie Infinity and Mydefi Pet P100,000, now and another P100,000 at the end of the year 1. Revenues of P150,000 will be generated at the end of year 1 and 2. What is the next present value of this NFT games if the effective annual interest rate is 10% ?Given: Cash flows for an investment. Year Cash flow $400 500 Select one: Required: EUAC at 5% per year. a. $70.62 b. $64.80 c. $74.63 d. $49.97 1 Show Transcribed Text 2 3 4 5 600 700 -2,000 I've tried doing the total present worth divided by the total present value factor but I am still not getting an answer close to the ones given.
- 2- Calculate the internal rate of return for the following investments: Initial Cost Annual Benefit Answer: 13.30% Operations and Maintenance Overhaul at year 3 Salvage Value Useful Life $-30,000 $10,000 $2,000 $8,000 $8,000 6 5 yearsMarquesa earns money and can spend money only this year and next year. Her utility isU(c1, c2) = c1c2. She can save and borrow as much as she wants at an annual interest rate of10%. If she earns $50,000 this year and $110,000 next year, what is the largest amount shecould consume next year?(a) $165,000(b) $150,000(c) $110,000(d) $82,500(e) None of the aboveQ5. A home builder is considering the purchase of a new commercial bulldozer, either AK or BR. AK First cost, $ Annual M&O costs, $ Annual benefits, $ Salvage value, $ Project Life, year -6,700 -1,500 4,000 1,000 3 BR -16,900 -1,200 4,500 3,500 6 (i) Construct a choice table for interest rates from 0% to 100%. (ii) If MARR is 8%, which alternative should be selected (use sensitivity analysis method)?
- The-Public Works Department of a city plans to repave some of the city streets in its 6-year budget. The plan calls for the expenditures of $20.000 at the end of the first year, $10,000 each at the end of the second and third year, and $12,000 each at the end of the fourth, fifth, and sixth year. If the annual rate is 6%, what is the present value of the expenditures? Select one: a. 55,078.7 b. 63,095.8 c. 67,078.6Two schemes: X & Y have been offered to Eric. Scheme X camands initial investment of $10K and $3k yearly benefit. While Scheme Y asks for initial investment of $12k and $3.5K yearly benefit. Which scheme Eric would choose considering discounted payback period while interest rate is 10%.11- A project requires an initial cost of $15432.00. It results in savings that start at $2000.00 at the end of the 2nd year and the savings increase by $1000.00 every year from then on until the end of 6 years. What is the rate of return on this project? a) 6% b) 7% c) 8% d) 9%