Find the equivalent annual costs of the two school options: i= 10%; n = 20 years 1. Build New School Cost New = 2 million O&M costs for 1st year = 400k/year Salvage value at EOY 20 = 200k 2. Contract for busing pupils to nearest exit school: Cost for 1st year = 300k Arithmetic Gradient Increase = 30k/yr/yr

Find the equivalent annual costs of the two school options: i= 10%; n = 20 years 1. Build New School Cost New = 2 million O&M costs for 1st year = 400k/year Salvage value at EOY 20 = 200k 2. Contract for busing pupils to nearest exit school: Cost for 1st year = 300k Arithmetic Gradient Increase = 30k/yr/yr

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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From the following information calculate the netpresent value of the two projects and suggestwhich of the two projects should be acceptedassuming a discount rate of 10% Project A Project BInitial investment Rs. 20,000 Rs. 30,000Estimated life 5 years 5 yearsScrap value Rs. 1,000 Rs. 2,000 The profit before depreciation and after taxes areas follows:Year Project ARs.Project BRs.1 5,000 20,0002 10,000 10,0003 10,000 5,0004 3,000 3,0005 2,000 3,000
An engineer is considering the purchase of a new set of batteries for an electric pallet jack. Given the cost, annual benefit, useful life, and i = 5%, conduct a net future worth analysis to decide which alternative to purchase.
Compare the Annual Worth of the two systems and identify the better option at MARR = 10% per year: Solar: First cost $1,500,000; AOC $-700,000; Salvage value $100,000; Life of 8 years Geothermal: First cost $2,250,000; AOC $-600,000; Salvage value $50,000; Life of 8 years Select the Geothermal System with a calculated AW of $-1,017,368 Select the Geothermal System with a calculated AW of $-727,591 Select the Solar System with a calculated AW of $-1,238, Select the Solar System with a calculated AW of $-972,416
Future value
A labor saving device system save $2.000 per year for five (5) years. It can be installed at a cost of $8,000. The rate of return on this planned investment is most nearly a. 12.36% b.i 10.36% Oc 10% Od. 9.36%
[College: Project Cost-Benefit Analysis Course, Economic Questions] - Can someone please explain the steps on how to complete these problems? Thank you in advance! Find the equivalent cash cost today for a car purchased for $1000 down and $500 a month for 36 months, if money is worth 12% per year compounded monthly. A person deposits $1100 at the end of the year for 20 years, and then withdraws an amount at the end of each year for the next 5 years. If money is worth 6% per year, and the same amount is withdrawn each year, what is the amount of each withdrawal? A person invests $1000 per year in a fund, for 10 years, and then stops making payments. If money is worth 8% per year, what is the value in the fund at the end of 20 years?
construction an environment friendly green home costs 15% more than a same-sized conventional home. For $450,000 how much would have to be saved in energy expenses per year to justify this home using the B-C ratio method. The rate is 10% per year, and the expected life of the home is 20 years.
what is the NPV of the new construction equipment? Initial cost = $100k, Salvage Value in 6 yrs = $25K, Increase Yearly Net Sales = $25k, Bank Rate = 10%
E2
Project A costs $10, oog to start and makes a mouth. Project cost $20,000 to start but only makes $500 month Project A $ 800 last only 20 years forever, project. B. last an interst of 15%. Project A is better. (use". FUAN" fabe.
Show the complete solution. Do not used Excel. Use manual method/handwritten 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.
plz help with this

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