Determine the capitalized cost of a permanent roadside historical marker that has a first cost of $57,500 and a maintenance cost of$3,900 once every 7 years. Use an interest rate of 10% per year.The capitalized cost is $ [61610.814 ORequired informationAssume that 25 years ago your dad invested $300,000, plus $29,000 in years 2 through 5, and $42,000 per year fromyear 6 on.At a very good interest rate of 11% per year, determine the CC value.The CC value is determined to be $

First cost of $ 57,500 is already the present cost. The cost of $3900 which occurs every 7 years can…

Answered: Determine the capitalized cost of a…

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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An investment of $800,000 is made in equipment that qualifies as 3-year equipment for MACRS-GDS depreciation. The BTCF profile for the investment is given below, including a $200,000 salvage value at the end of the 5-year planning horizon. A 25% tax rate applies and the after-tax MARR is 8%. Determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR.
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A bridge that was constructed at a cost of P 75,000 is expected to last 30 years, at the end of which time its renewal cost will be P 40,000. Annual repairs and maintenance are P 3,000. What is the capitalized cost of the bridge at an interest of 6%? 133,433.00 50,000.00 125,000.00 140,625.00 75,948.67 58,433.00
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Cost estimates for a porposed public facility are being evaluated. Initial construction cost is anticipated to be $120,000 and annual maintenance expenses are expected to be $6500 for the first 20 years and $2000 for every year thereafter. The facility is to be used and maintained for an indefinite period of time. Using an interest rate of 10% per year, the capitalized cost of this facility is most nearly? a. $180,000 b. $190,000 c. $200,000 d. $270,000
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Determine the capitalized cost of a permanent roadside historical marker that has a first cost of $57500 and a maintenance cost of $3,900 once every 7 years. Use an interest rate of 10% per year The capitalized cost is $ 61610.814