E. The year-end operating and maintenance costs of a certain machine are estimated to be P4,800 the first year and to increase by P800 each year thereafter during its eight-year life. If capital is worth 15%, determine the equivalent uniform year-end costs.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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Chapter5: The Time Value Of Money
Section: Chapter Questions
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capitalized cost, arithmetic and geometric gradien
2. The year-end operating and maintenance costs of a certain machine are estimated to be P4,800 the first
year and to increase by P800 each year thereafter during its eight-year life. If capital is worth 15%,
determine the equivalent uniform year-end costs.
3. For the following arithmetic gradient series, with interest at 10%.
Year Deposits
PO
800
Find the present worth of the series at the
end of (15+N) th year assuming no further
deposits after the 6th year.
1,600
2,400
5
3,200
6
4,000
4. A man makes a series of ten annual deposits starting at P2,000 at the end of the first year and increasing
the amount deposited by (10+N/5)% every year thereafter. Find the total amount at the end of ten years
if the rate of interest on all sums on deposit is 8%.
2.
4)
Transcribed Image Text:2. The year-end operating and maintenance costs of a certain machine are estimated to be P4,800 the first year and to increase by P800 each year thereafter during its eight-year life. If capital is worth 15%, determine the equivalent uniform year-end costs. 3. For the following arithmetic gradient series, with interest at 10%. Year Deposits PO 800 Find the present worth of the series at the end of (15+N) th year assuming no further deposits after the 6th year. 1,600 2,400 5 3,200 6 4,000 4. A man makes a series of ten annual deposits starting at P2,000 at the end of the first year and increasing the amount deposited by (10+N/5)% every year thereafter. Find the total amount at the end of ten years if the rate of interest on all sums on deposit is 8%. 2. 4)
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