An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for repairs. After this P90, 000 will be needed for repairs at the end of each year for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period? P79,245.82 P69,245.82 P59,245.82 P49,245.82

An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for repairs. After this P90, 000 will be needed for repairs at the end of each year for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period? P79,245.82 P69,245.82 P59,245.82 P49,245.82

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A car can be purchased for P650,000 when new. There follows a schedule ofannual operating expenses for each year and trade in values at the end of each year. Assume that these amounts would be repeated for future replacements, and that the car will not be kept more than 3 years. if interest on invested capital is 18% before taxes. Determine at which year's end the car should be replaced so that cost will be minimized.
1. Potential voting rights from call options held by an investor should be taken into account in determining whether power over the investee exists, but only when the call options are "out of the money". 2. An investor's rights must be substantive to give rise to power over the investee. 3. Protective rights such as the ability to remove key management personnel under restricted circumstances do not contribute to establishing power over the investee. 4. If unanimous consent is required from two or more investors, this gives rise to power over the investee. Ture of false?
One Company has offered a small company two method by which to pay for some needed roof repairs. Method 1 involves a payment of $16500 as soon as the job done, i.e.,now. Method 2 allows the company to defer payment for 2 years, at which time a payment of $26400 would be required. If the interest rate is 12% per year, make your decision which method is better than another and why?
6. Contracting company plans to update its equipment so that its trucks are replaced after five years from now. The estimated cost required for so is ($ 200,000). The company plans to pay only (20%) from the amount directly, and borrow the rest. The company decided to deposits an annually uniform series during those five years to provide the amount to be paid directly. What is the amount of payment that annually paid? If the interest rate is (7%).
Economics The DPWH has two proposed operating systems to charge and track toll fees. The 1st operating system has a cost of P25M and an additional cost of P11566084 after 10 years. The annual software maintenance contract cost is P7959010 for the first 4 years and P5137999 thereafter. In addition, there is expected to be recurring major upgrade cost of P15M every 13 years. The 2nd operating system costs P20M, annual software maintenance that costs P4M, additional repair of P10M every 5 years and a recurring major upgrade cost of P50M every 11 years. If interest is 20% cpd. monthly, find the Capitalized Cost of the 1st Operating System.
The purchase price of a home in a subdivision in Antipolo City is ₱4,200,000. A down payment of 20% is made and secures a loan on the remaining balance for 25 years at an annual interest rate of 5.4%. Compute for the down payment.
A general purpose truck is purchased for business. Its cost Basis is 70,000. It will last 10 years and be sold for 10,000. i = 6% for the loan with monthly payments. What is the depreciation allowance for the third year using MACRS? O 19466 O 894 21774 O 26971 O 13440
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Using the previous table, enter the correct factor for three periods at 5%: Periodic payment x Factor = Present value $6,000 x = $16,338 The controller at Ross has determined that the company could save $6,000 per year in engineering costs by purchasing a new machine. The new machine would last 12 years and provide the aforementioned annual monetary benefit throughout its entire life. Assuming the interest rate at which Ross purchases this type of machinery is 9%, what is the maximum amount the company should pay for the machine? $fill in the blank 5aca5ff34fa005f_2 (Hint: This is basically a present value of an ordinary annuity problem as highlighted above.) Assume that the actual cost of the machine is $50,000. Weighing the present value of the benefits against the cost of the machine, should Ross purchase this piece of machinery? Use snippets to answer
please answer very quickly
Maintenance costs on a piece of equipment begin at $1000 in period 1 and increase by $250 each year over its 5-year life. If the interest rate is 8%, how much money should be put aside now to pay these maintenance costs?
An asphalt road requires no repairs until the end of 2 years. At the end of 3rdyear, P90, 000 will be needed for repairs for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what is the present value of the repair cost and its equivalent uniform annual cost for the 12-year period? Show complete solution and formula used. Calculate it manually. Please don't type it. Write it in a paper. Provide cash flow diagram. Thank you! ANS. P = 402,386.46, A = 71,089.35

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