Answer step by step.. 1. Suppose an engineer receives an initial annual salary of P 24,000 increasing at the rate of P 1,200a year. If money is worth 12%, determine his equivalent annual salary for a period of 10 years.(Ans. P 28,301,58)2. The year-end operating and maintenance costs of a certain machine are estimated to be P 4,800the first year and to increase by P 800 each year thereafter during its eight-year life. If capitalis worth 15%, determine the equivalent uniform year-end costs.(Ans. P 7,025.06)

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Answered: equivalent annual salary 1

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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The maintenance costs of a new boiler are estimated as follows: P 600 per year for the first 3 years, P X at the 4th year, and P 1,800 per year starting at the 5th year up to the end of its 10 - year life. If the future value of all the maintenance is P 20,000, find the value of X. Money is 6% compounded annually. a. P 3,901 b. P 3,230c. P 14,374d. P 13,268 show solution. do not use excel ans b
2. An equipment has a maintenance cost of P20,000 a year for two years, increased by P40,000 at the end of four years, and P80,000 at the end of 8 years. Compute the semi-annual amount that must be set for this equipment. Money is worth 10% compounded annually.
. The year-end operating and maintenance costs of a certain machine are estimated to be P12,000 the first year and to increase by P2,500 each year during its 4-year life. If capital is worth 12%, determine the equivalent uniform year-end costs.
The operating and maintenance expenses for a mining machine are expected to be $11000 in the first year and increase by $700 per year during the 25-year life of the machine. What uniform series of payments would cover these expenses over the life of the machine? Interest is 10%/year compounded annually. $4
The annual cost of a certain service is $42,000 at EOY 1 which decreases by 5.5% per year for a period of 12 years. If the interest rate is 5.5% per year, what is the present equivalent of the annual cost at the beginning of year 1? O a. $477,725 O b. $295,355 O c. $279,957 O d. $504,000 O e. $262,720
The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60,000 per year for the next 5 years, cost of overhaul at the end of the 5th and 8th year is P140,000. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually.
Suppose a man receives an initial annual salary of 60000, increasing at the rate of 5000 a year. If money is worth 10%, determine his equivalent uniform salary for a period of 8 years.
The maintenance cost of a certain equipment is P80,000.00 per year for the first 5 years, P120,000.00 per year for the next 5 years, cost of overhaul at the end of the 5th year and the 8th year is P280,000.00. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually? Answer. P149,403.62
The maintenance cost of a machine this year is expected to be P5, 000. The cost will increase P1, 000 each year for the subsequent 4 years. The interest is 15% compounded annually. What is the approximate worth of maintenance for the machine over the full 5 years?
A machine has a useful life of 10 years. It requires a semi-annual operating cost of $3,000 for the first 4 years, increasing by 6% per semi-annual period thereafter. Use an interest rate of 19.53% per year/compounded quarterly. Determine the present sum of money that should be put aside to pay for the required operating cost over the 10-year period.
The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an amount of P 8,000. At the succeeding years, the maintenance cost will increase by a uniform amount, amounting to P 600 at the end of the 6th year. Find the present amount needed to be deposited now at 8% interest to take care of all the maintenance costs of the equipment.
• A company rent a building for P50,000 per month for a period of 10 years. Find the accumulative amount of the rentals if the rental for each month is being paid at the start of each month and money is worth 12% compounded monthly.

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