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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A county in Tennessee is considering the following public interest project. Initial Cost $22.5M Annual Maintenance Cost $525K EUAB $3.3M Given a useful life of 12 years and an interest rate of 4%, the benefit /cost ratio is........... A. 1.01 B. 1.67 C. 1.48 D. 1.51.
The information below relates to the purchase of equipment: investment in the project: $10,000 Net annual cash inflows: 2,400 Working capital required: 5,000 Salvage value of the equipment: 1,000 Life of the project: 8 years At the completion of the project, the working capital will be released for use elsewhere. Compute the net present value of the project, using a discount rate of 10% $606 $8,271 ($1,729) $1,729
A Property is expected to have 5 Year NOI flow of $10,000, $12,000, $15,000, $18,000, and $10,000 and a final (year 5) sale price of $90,000. Using capitalization rate of 12% what is the estimated market value of the property? 97,354 104,664 87,641 100,919 90,724
A wedding maching custs $250,000. A facility purchases one and plans to use it for 10 years, at 'which point it will have a value of 35,000. calculate the depreciation allowance and book value after 5 yrak of use using Straight line depreciation balance depreciation (a) (b) using deckning () Uring MACKS 7-year property with 50% bonus depreciation (d) using MACKS 7- year property with 50% bonus depreciation of the machine is sold if in year s?
expense of $500. Consider a yearly Two machines are evaluated for a new project, consider a yearly interest rate of 6% and the information described in the following table. Determine EUAC for both alternatives and determine the best option. Purchase cost Salvage value Duration Machine A Machine B $10,000 $15,000 $1,250 $1,950 5 years 10 years 11 13 L
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
6. A 18,000 car will have a scrap value of 800 nine years after the date of purchase. Construct a sinking fund schedule to find the book value of the carat the end of 5 years.
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