aintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 8 years, followed by a $20,000 expenditure in the year 18 and a $30,000 expenditure in the year 28. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge?

Q: Maintenance cost for a small bridge expected to last for 60 years is estimated to be Php1,000 each…

A: The yearly cost of owning, operating, and sustaining an asset throughout its entire life is referred…

Q: A project has a $53000 first cost that returns $5000 per year over its 15 year life. It has a $12000…

A: The payback period, a monetary metric, estimates how long it will take an investment to recover its…

Q: The following are the costs for one of the alternatives to construct a new bridge: Construction cost…

A: We are given the costs of an alternative to construct a new bridge.  The initial construction cost…

Q: In one year, a project will be worth $10,000. What is that project worth today assuming a discount…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: An investment that costs $50,000 will return $15,000 operating cash flows per year for five years.…

A: NET PRESENT VALUENet Present Value is one of the Important Capital Budgeting Technique. Net Present…

Q: Replacing old equipment at an immediate cost of $70,000 and an additional outlay of $10,000 three…

A: Net present value is an important capital budgeting tool. A project is regarded as feasible if its…

Q: flows of $21,200 for nine years costs $120,000 today. What is the NPV for the project if the…

A: Net present value or NPV is excess of present value of cash inflows over present value of cash…

Q: A flood control project with a life of 14 years will require an investment of $57.000 and annual…

A: Benefit to cost ratio: It is ratio of present value of the benefits to present value of costs.

Q: What is the project's payback period? Round your answer to two decimal places.  years

A: Payback Period: It is the period in which the project or investment returns its initial cost.  A…

Q: An investment project costs $50,000 and has annual cash flows of $3,500 for 20 years. What is the…

A: Discounted Payback period refers to one of the modern techniques which measure the time that the…

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: A proposed 3-year project has expected annual cash infows of $550, $1, 600, and $2, 900, for Years 1…

A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…

Q: A proposed 3-year project has expected annual cash infows of $550, $1,600, and $ 2,900, for Years 1…

A: NPV is one of the capital budgeting techniques used for checking the feasibility of a project. When…

Q: A project that provides annual cash flows of $24,000 for 9 years costs $110,000 today. Under the IRR…

A: Required return = 8%Initial cash flow (Year 0) = - $110,000Cash inflow (Year 1 - 9) = $24,000IRR =…

Q: an investment project provides cash inflows of $850 per year for 5 years. What is the project…

A: Initial cost = $5600 Annual cash inflow = $850 Period = 5 Years

Q: A flexible pavement construction project is proposed. The estimated service life is 20 years. The…

A: NPV = -205000

Q: An investment project costs $13,700 and has annual cash flows of $3,500 for six years. a) What is…

A: The discounted payback period is a financial metric that measures the time it takes for an…

Q: Two alternatives are under consideration for maintenance of a bridge. Select the most cost-effective…

A: We have two alternatives for repair. We need to find the cost effective alternative using equivalent…

Q: A project costs $1200.00 at the end of the 1st year and the yearly cost increases by $400.00 every…

A: EUAC = r*NPV/1-(1+r)^(-n) here r = 8% and n is 4 years Let us first compute the NPV: Year Costs…

Q: Project 1 requires an original investment of $48,500. The project will yield cash flows of $13,000…

A: For determining the NPV, present value of $13,000 annual flows and $54,000 salvage will be…

Q: An investment will cost $10,000 today for equipment plus expenses for labor and materials at a…

A: Discounted payback refers to the method of capital budgeting in which time period taken to convert…

Q: A project has estimated annual net cash flows of $80,000 for seven years and is estimated to cost…

A: (a) Calculate net present value of the project: Therefore, NPV of this project amount is $121,560

Q: A project requires an investment of $15,000 today and it is expected to generate free cash flows of…

A: Equivalent annual annuity is a financial concept used to compare and evaluate different investment…

Q: What is the capitalized cost of the project with interest rate 10% per year compounded monthly? The…

A: Present value of annuity is the current value of the future payments that are calculated using the…