Centrum civil Engineering consulting firms has a contract with an Embassy in Mexico to provide maintenance in the building, It entered into a foxed-price contract with a spec home builder, resulting in a stable income of S270.000 per year for the first four year period. At the end of that time, a mild recession slowed the development so the parties signed another contract for $150.000 per year for four more years. What is the equivalent total cost of the contracts at the end considering an interest rate of 7% per year? The present worth of first contract as per your calculation is

Centrum civil Engineering consulting firms has a contract with an Embassy in Mexico to provide maintenance in the building, It entered into a foxed-price contract with a spec home builder, resulting in a stable income of S270.000 per year for the first four year period. At the end of that time, a mild recession slowed the development so the parties signed another contract for $150.000 per year for four more years. What is the equivalent total cost of the contracts at the end considering an interest rate of 7% per year? The present worth of first contract as per your calculation is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

How much should one set aside to pay $5000 per year for maintenance on a small park if interest is assumed to be 4%? For perpetual maintenance, the principal sum must remain undiminished after the annual disbursement is made.
Please provide a clear and complete solution. Answer fast for I have 30 minutes left. Thank you very much.
The heat loss through the exterior walls of a certain manufacturing plant is estimated to cost $29000 at EOY 1. ABC Insulation, Inc., told the owner of the plant that the heat loss can be reduced by 80% if he is willing to spend $401,000 to install its innovative insulation material. The cost of heat loss is expected to rise by $2100 per year (uniform gradient) after the next year. The owner plans to keep the present building for 15 more years. Assume MARR (minimum acceptable rate of return) is 4% per year. (a) What is the present equivalent value of the cost savings in the reduction of heat loss for these 15 years? Round off your final answer to nearest thousand. (b) Using AW method, would you recommend the owner to install ABC's new insulation material? Why?
What is the Present Worth of $2,000 costs in year one, increaing by $500 per year for years 2 through 6. The interest rate is 12% per year. Note : You must show a cash flow diagram, factor- ntation equations, and a solution)
For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is P1,020 and the interest rate is 10% per year, find its PW. ANSWER: Blank 1
If you obtained a loan of P1.5Million at the rate of 12% per year interest rate to build a house, how much you pay yearly to amortize the loan within a period of 15 years?
Required information Eight years ago, Ohio Valley Trucking purchased a large-capacity dump truck for $116,000 to provide short-haul earth- moving services. The company sold it today for $45,000. Operating and maintenance costs averaged $10,900 per year. A complete overhaul at the end of year 3 costs an extra $3600. Calculate the annual cost of the truck at i= 8% per year. The annual cost of the truck is $- 503,717 per year. 13
Answer the question and Draw the cash-flow diagram
A company has approved a car plan for its six senior officers in which the companywill shoulder 25% of the cost and the difference payable by each officer to a financingcompany in 48 equal end of the month installments at an interest rate of 1.5% per month. If the cost of each car is P350,000, determine the amount each officer has to pay the financing company per month? PLEASE DO NOT USE EXCEL. PLEASE EXPLAIN USING FORMULAS OPTIONS A. P7,523.90 B. P7,619.22 C. P7,190.00 D. P7,710.94
A company has approved a car plan for its six senior officers in which the companywill shoulder 25% of the cost and the difference payable by each officer to a financingcompany in 48 equal end of the month installments at an interest rate of 1.5% per month. If the cost of each car is P350,000, determine the amount each officer has to pay the financing company per month? OPTIONS A. P7,523.90 B. P7,619.22 C. P7,190.00 D. P7,710.94
A merchant puts in his P3,000.00 to a small business for a period of six years. With a given interest rate on the investment of 20% per year, compounded annually, how much money will he collect at the end of the sixth year?
If a company invests Php250,000 in new packaging equipment, by how much must it reduce its annual costs if it expects to recover the investment in seven years at an interest rate of 10% per year? A) Php51, 351.37 B) Php62, 981.52 C) Php46 234.46 D) Php56, 732.16