An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance cost are as follows: 1styear = P 15, 000 2ndyear = P 17, 000 3rdyear =P 19, 000 4thyear = P 21, 000 5thyear = P 23, 000 How much be budgeted and deposited in a fund that earns 9% per year compounded annually in order to pay for the machine.

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: The generator set requires no maintenance until the end of 2 years when P60,000 will be needed for…

A: Here, At the end of year 2 , maintenance cost is P60,000 From Year 3 to Year 7, Maintenance Cost is…

Q: A special purpose machine toolset costs $20,000. The toolset will be financed through a bank loan of…

A: The question is based on the calculation for benefit of buying a special purpose machine , which is…

Q: A widget machine will cost $480,000.  The anticipated increase in revenue will be $140,000/year for…

A: Cost of the machine = $480000 Revenue increase for 5 years = $140000 Annual expenses for 5 years =…

Q: The initial cost of a van is $22,800; its salvage value after 5 years will be $8500. Maintenance is…

A: The equivalent uniform annual cost(EUAC) is the annual cost of maintaining and operating assets…

Q: A certain machine costs GH¢25000 and lasts 6 years, after which time it has a scrap value of…

A: A capitalized cost of an asset is the cost incurred on an asset to put it to use. Capitalized cost…

Q: A computer purchased for $1200 will have a salvage value of $600 after 6 years. Annual maintenance…

A: EUAC or Equivalent uniform annual cost is the annual cost associated with operating and maintaining…

Q: A new process for manufacturing laser levels will have a first cost of $40,000 with annual cost o…

A: The payback period is used to determine how long it will take an investment to make back its initial…

Q: A precision lathe costs $10,400 and will cost $22,000 a year to operate and maintain. If the…

A: Equivalent annual cost is the cost of operating and maintaining an asset annually. It is also called…

Q: I have purchased a machine worth P1.862.585.00. And it needs maintenance at the end of every 6…

A: Purchase Price = 1,862,585 Maintenance Cost = 2% of Purchase Price = 2% * 1.862,585 = 37,251.70…

Q: A new gizmo costs $9050. Maintenance costs $6907 per year and labour savings are $1900 per year.…

A: The payback period is a financial metric that is commonly used to determine how long it will take…

Q: A widget machine will cost $480,000.  The anticipated increase in revenue will be $140,000/year for…

A: Internal rate of return is the rate expressed in percentage terms which equalize the net present…

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: To provide for the automation of a production process in six years, Invista is starting a sinking…

A: Amount required = $800,000Interest rate = 6.4% compounded monthlyNumber of years = 6To find:…

Q: A 1000ft (one lane) asphalt road costs P3.8M. It requires no upkeep until the end of 3 years when…

A: Time Period 20 Initial Cost P 38,00,000.00 Repair Cost at the end of 3rd year      P 80,000.00…

Q: Maintenance costs at the Woodland Waterpark are predicted to be $1,400 in the first year and…

A: Maintenance costs at the Woodland Waterpark are predicted to be $1,400 in the first year and…

Q: Improvements with an initial investment cost of 67,000 TL will be made in an assembly line. Yearly…

A: Company uses capital budgeting techniques for the purpose of evaluating different projects. In the…

Q: A library shelving system has a first cost of $24,500 and a useful life of 7 years. The annual…

A: benefit-cost ratio = Present value of cash inflows / Present value of cash outflows   Present…

Q: Calculate the Simple Payback in years for the following system: The initial capital investment for…

A: Concept. Payback period is the time or number of years required to recover initial investment . In…

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

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

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: A machine has a useful life of 10 years. It requires a semi- annual operating cost of $3,000 for the…

A: Useful life = 10 yearsSemi-annual operating cost = $3000Number of years = 4Growth rate = 6%Interest…

Q: A machine's useful life is 10 years. What is the EUAC for this mactinesm maintenance cost of $50,000…

A:

Q: A project with the following costs are under consideration to determine its profitability. Using the…

A: To determine if the project should be executed, we need to calculate the Internal Rate of Return…

Q: The initial construction cost of a project is $200000 which should be paid at the beginning of the…

A: Cash Flow Diagram:-

Q: The construction cost of a new bridge is $2M. Annual upkeep is estimated to be $35K. In addition to…

A: The present value of cashflows assumed to continue for an infinite period can be defined as…

Q: n equipment has a maintenance cost of P20,000 a year for two years, increased by P40,000 at the end…

A: In this we have to find out the present value and find out the semi annual payment for that.

Q: Project Phoenix costs $1.25 million and yields annual cost savings of $300,000 for seven years. The…

A: Payback period: This method is used to calculate how many years a project will take to recover its…

Q: Projects A and B have first costs of $5,000 and $9,000 respectively. • Project A has net annual…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: The highway department expects the maintenance cost for a piece of heavy construction equipment to…

A: Maintenance Cost of highway department: Year Maintenance Cost (Annual Increase of 10%) 1…

Q: A large standby electricity generator in a hospital operating room has a first cost of $67,250 and…

A: in this we have determine annual worth and find out minimum annual worth.

Q: 2. A company investment on a machine costing of P40,000 and has a life of 5 years. Yearly cash…

A: Net Present Value=Present value of cash inflows-Present value of cash outflows Profitability…

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.