A certain company has the following maintenance cost for all of its machine. On the first 5 years, the company needs P100,000 per year and on the next 7 years he company needs P250,000 per year. How much will the company pay in total if they are going to pay all these costs today? Interest for the whole duration is 10% compounded monthly.

Q: Fruit Packers uses packing machines to prepare its products for shipping. Each machine  costs…

A: Equivalent annual cost (EAC) Equivalent annual cost (EAC) is an annual cost to own, maintain and…

Q: An apartment sells for BRL 675,000, with 25% down payment and the remainder financed by the PRICE…

A: The process of fixing loan payments at a fixed rate every month is called loan amortization. Equal…

Q: A machine costs $5240 and produces benefits of $1000 at the end of each year for 8 years. Assume an…

A: The Payback period is among the of the techniques of capital budgeting that do not take into…

Q: What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%?

A: The equivalent annual cost is used to assess the total cost of various financing or investment…

Q: You want to buy a boat costing $35,000.  Your down payment is $7,000.  The remainder will be paid…

A: We have to calculate present value factor by considering monthly interest and from that we can…

Q: A new gizmo costs $10 000. Maintenance costs $2000 per year and labour savings are $6567 per year.…

A: The payback period refers to the period that is required to recover the initial cost. With the help…

Q: A building is priced at $250,000. If a down payment of $25,000 is made and a payment of $5000 every…

A: The time value of money (TVM) is a financial concept that recognizes the idea that a sum of money…

Q: what is your monthly payment? How much interest will you pay?

A: A contract between two parties where one agrees to make a fixed sum of money to the other person at…

Q: Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor,…

A: The present worth of the machine is operating cost is the present value of all future cash outflow

Q: A laundry business valued at $120,000 is bought for a down payment of 30% and payments of $5000 at…

A: Time, the value of money refers to the concept used for determining the present value of an asset…

Q: The maintenance and operations costs for a piece of equipment are estimated to be $300 the first…

A: Uniform monthly payment means making a fixed payment amount every month. In the context of the…

Q: Lions Co. has machinery that cost $150,000. It is to be leased for 15 years with rent received at…

A: Lease is defined as the agreement formed between two parties namely lessor and lessee, under which…

Q: A company has just purchased a machine with a cost of $79,994, and signed a note to pay the…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: A house costs 150,000. If the down payment is 20% of the price and the rest is financed with a…

A: First we need to determine the loan amount. This can be determined with the formula below: