Maintenance expense in a waste treatment facility continue to increase uniformly for a period of five years. The expense in year 1 is Php26,000 and continually increase by a factor of Php2,000 annually through year 5. If i = 10 % per year, the closest value of the present worth of the cost is almost: * Php112,300 Php310,500 Php122,100 Php203,900

Maintenance expense in a waste treatment facility continue to increase uniformly for a period of five years. The expense in year 1 is Php26,000 and continually increase by a factor of Php2,000 annually through year 5. If i = 10 % per year, the closest value of the present worth of the cost is almost: * Php112,300 Php310,500 Php122,100 Php203,900

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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Project A requires a $315,000 initial investment for new machinery with a five-year life and a salvage value of $35,500. Project A is expected to yield annual income of $23,900 per year and net cash flow of $78,750 per year for the next five years.Compute Project A’s accounting rate of return. *please help correct the answer
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.
Maintenance costs on a piece of equipment begin at $1000 in period 1 and increase by $250 each year over its 5-year life. If the interest rate is 8%, how much money should be put aside now to pay these maintenance costs?
An asphalt road requires no repairs until the end of 2 years. At the end of 3rdyear, P90, 000 will be needed for repairs for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what is the present value of the repair cost and its equivalent uniform annual cost for the 12-year period? Show complete solution and formula used. Calculate it manually. Please don't type it. Write it in a paper. Provide cash flow diagram. Thank you! ANS. P = 402,386.46, A = 71,089.35
Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year one and increase by 3% each year through year five. What is the equivalent annual worth of the maintenance costs at an interest rate of 10% per year, compounded bi-monthly (compounded once in two months)? The equivalent annual worth is $
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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
A machine costs $25,000; it is expected to generate annual cash revenues of $8,000 and annual cash expenses of $2,000 for five years. The required rate of return is 12%. The net present value of the machine is: Select one: a. $(3,840). b. $(3,370). c. $0. d. $21,630. e. $28,840.
It is known that a project for the construction of public facilities with estimated costs and benefits of the project is as follows: • 6 year project life. • The applicable discount rate is 10% in the first year and the discount for the first year the second is an increase of 5%. • Expenses incurred only in year 1 and 2, with each Rp. 515,000,000 and Rp. 415 000 000. • Benefits received from year 3 to year 6 respectively Rp. 205,000,000, Rp. 305 000 000, Rp. 405 000 000 and IDR 505,000,000 Please count and explain the Project investment criteria a. Payback Period of Investment criteria b. NPV (net present value) criteria c. IRR (Internal Rate of Return) criteria
An industrial laser can be purchased and installed for $90,000$. Assume that the GDS recovery rate is given for the 7-year period. We expect that the laser stays in service for eight years, and we gain $10,000$ from the disposal of it at the end of year eight. The $11,038$ net annual value that can be attributed to this laser is constant over all the eight years. Assume that the effective income tax rate is $0.25$ and the after-tax MARR equals $15%$ per year. What is the ATCF at the end of year six? Consider the depreciation deduction based on the 7-year period GDS recovery rate.
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