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Capitalized cost for painting costs А сотрапу is planning to spend $ 2,500, 000 in a new werehouse. There will be no maintenace cost for the first 5 years. Then, annual maintenace cost will be $30,000 per yar from year 6 to the end of life of the werehouse. The werehouse will also be painted every 15 years (begining at year 10)at a cost of 75,000. Consider a MARR of 10% per year. What is the capitalized cost of painting the werehouse?

Capitalized cost for painting costs А сотрапу is planning to spend $ 2,500, 000 in a new werehouse. There will be no maintenace cost for the first 5 years. Then, annual maintenace cost will be $30,000 per yar from year 6 to the end of life of the werehouse. The werehouse will also be painted every 15 years (begining at year 10)at a cost of 75,000. Consider a MARR of 10% per year. What is the capitalized cost of painting the werehouse?

Essentials Of Investments
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
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Please show all your steps. I Attached a formula sheet if need it. Please label the formulas used if any. Thankyou.

Capitalized cost for painting costs А сотраny is planning to spend $ 2, 500, 000 in a nеw werehouse. There will be no maintenace cost for the first 5 years. Then, aппиal mainteпасe сost will be $30, 000 per yar from year 6 to the end of life of the werehouse. The werehouse will also be painted every (begining at year 10)at a cost of 75,000. Consider a MARR of 10% per year. 15 years What is the capitalized cost of painting the werehouse? (а) $43.745 (b) $113,475 (c) $35,538 (d) $65,490
Transcribed Image Text:Capitalized cost for painting costs А сотраny is planning to spend $ 2, 500, 000 in a nеw werehouse. There will be no maintenace cost for the first 5 years. Then, aппиal mainteпасe сost will be $30, 000 per yar from year 6 to the end of life of the werehouse. The werehouse will also be painted every (begining at year 10)at a cost of 75,000. Consider a MARR of 10% per year. 15 years What is the capitalized cost of painting the werehouse? (а) $43.745 (b) $113,475 (c) $35,538 (d) $65,490
List of Equations: M i̟ 1+ M i=|1+ СК -1 i- -1 (1+i)* –1 N i - (A/F, i, N) = (F/A, i, N) = (1+i)* – 1 (1+i)* – 1 i(1+i)* i(1+i)* (P/A, i, N) : (A/P, i,N) = _(1+i)" – 1 - (1 +i)™ – iN – 1 (1+i)" – iN –1 - - - (P/G,i, N): (A/G,i, N) = %3D N (1+i) i[(1 +i)^ – 1] 1-(1+ g) (1+ i)* N (P/A,g, i, N)= if itg i -g N (P/A,g i, N)= (1+i) if i=g А PW — СЕ CR(i) — (Р — S)(А/Р, і, N) + iS Bn = A(P/A,i,N-n) In = (Bn-1)*i= A(P/A,i,N-n+1)*i PPn = A(P/F,i,N-n+1) P-S Ds/(n) = Р-S BVs/(n)=P – n N BV 45(n) = P(1–d)" Da, (n) = dP(1– d) n-1 for n>1 CA, = rd{1-4)a- CCA1 = P(d/2) ССА (1-d)"-2 for n>2 G=t * (Udisposal – S) G=t-(Udisposal – P) – tcG+(S – P) - d i'= i- f) (1+f) i =i' +f+i'*f n-1 U n 2 MARRA = MARRR +f+ MARRR f *
Transcribed Image Text:List of Equations: M i̟ 1+ M i=|1+ СК -1 i- -1 (1+i)* –1 N i - (A/F, i, N) = (F/A, i, N) = (1+i)* – 1 (1+i)* – 1 i(1+i)* i(1+i)* (P/A, i, N) : (A/P, i,N) = _(1+i)" – 1 - (1 +i)™ – iN – 1 (1+i)" – iN –1 - - - (P/G,i, N): (A/G,i, N) = %3D N (1+i) i[(1 +i)^ – 1] 1-(1+ g) (1+ i)* N (P/A,g, i, N)= if itg i -g N (P/A,g i, N)= (1+i) if i=g А PW — СЕ CR(i) — (Р — S)(А/Р, і, N) + iS Bn = A(P/A,i,N-n) In = (Bn-1)*i= A(P/A,i,N-n+1)*i PPn = A(P/F,i,N-n+1) P-S Ds/(n) = Р-S BVs/(n)=P – n N BV 45(n) = P(1–d)" Da, (n) = dP(1– d) n-1 for n>1 CA, = rd{1-4)a- CCA1 = P(d/2) ССА (1-d)"-2 for n>2 G=t * (Udisposal – S) G=t-(Udisposal – P) – tcG+(S – P) - d i'= i- f) (1+f) i =i' +f+i'*f n-1 U n 2 MARRA = MARRR +f+ MARRR f *
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