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projected to average $0.8 million per year. If the city's MARR is 12% per year, what is the capitalized worth of the system? The study period is 100 years. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The capitalized worth of the system is $ million (Round to two decimal places) CD

projected to average $0.8 million per year. If the city's MARR is 12% per year, what is the capitalized worth of the system? The study period is 100 years. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The capitalized worth of the system is $ million (Round to two decimal places) CD

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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← A city is spending $19.2 million on a new sewage system. The expected life of the system is 45 years, and it will have no market value at the end of its life. Operating and maintenance expenses for the system are projected to average $0.8 million per year. If the city's MARR is 12% per year, what is the capitalized worth of the system? The study period is 100 years. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The capitalized worth of the system is $ million (Round to two decimal places.)
Transcribed Image Text:← A city is spending $19.2 million on a new sewage system. The expected life of the system is 45 years, and it will have no market value at the end of its life. Operating and maintenance expenses for the system are projected to average $0.8 million per year. If the city's MARR is 12% per year, what is the capitalized worth of the system? The study period is 100 years. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The capitalized worth of the system is $ million (Round to two decimal places.)
2/26/23, 3:10 PM N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 60 80 100 00 Single Payment Compound Amount Factor To Find F Given P FIP 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6.8660 7.6900 8.6128 9.6463 10.8038 12.1003 13.5523 15.1786 17.0001 29.9599 Discrete Compounding; /= 12% Present Worth Factor To Find P Given F PIF 52.7996 93.0510 163.9876 289.0022 897.5969 8658.4831 a-Less than 0.0001. 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2046 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 0.0926 0.0826 0.0588 0.0334 0.0189 0.0107 0.0061 0.0035 0.0011 0.0001 83522 2657 0.0000 0.0738 0.0659 Compound Amount Factor To Find F Given A FIA 1.0000 2.1200 3.3744 4.7793 6.3528 8.1152 10.0890 12.2997 14.7757 17.5487 20.6546 24.1331 28.0291 32.3926 37.2797 42.7533 48.8837 55.7497 63.4397 72.0524 81.6987 92.5026 104.6029 118.1552 133.3339 241.3327 431.6635 767.0914 1358 2300 2400.0182 7471.6411 72145.6925 696010.5477 More Info Uniform Series Present Worth Factor To Find P Given A PIA 0.8929 1.6901 2.4018 3.0373 3.6048 4.1114 4.5638 4.9676 5.3282 5.6502 5.9377 6.1944 6.4235 6.6282 6.8109 6.9740 7.1196 7.2497 7.3658 7.4694 7.5620 7.6446 7.7184 7.7843 7.8431 8.0552 8.1755 8.2438 8.2825 8.3045 8.3240 8.3324 8.3332 8.3333 Sinking Fund Factor To Find A Given F AIF 1.0000 0.4717 0.2963 0.2092 0.1574 0.1232 0.0991 0.0813 0.0677 0.0570 0.0484 0.0414 0.0357 0.0309 0.0268 0.0234 0.0205 0.0179 0.0158 0.0139 0.0122 0.0108 0.0096 0.0085 0.0075 0.0041 0.0023 0.0013 0.0007 0.0004 0.0001 Capital Recovery Factor To Find A Given P A/P 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 0.1684 0.1614 0.1557 0.1509 0.1468 0.1434 0.1405 0.1379 0.1358 0.1339 0.1322 0.1308 0.1296 0.1285 0.1275 0.1241 0.1223 0.1213 0.1207 0.1204 0.1201 0.1200 0.1200 0.1200
Transcribed Image Text:2/26/23, 3:10 PM N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 60 80 100 00 Single Payment Compound Amount Factor To Find F Given P FIP 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6.8660 7.6900 8.6128 9.6463 10.8038 12.1003 13.5523 15.1786 17.0001 29.9599 Discrete Compounding; /= 12% Present Worth Factor To Find P Given F PIF 52.7996 93.0510 163.9876 289.0022 897.5969 8658.4831 a-Less than 0.0001. 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2046 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 0.0926 0.0826 0.0588 0.0334 0.0189 0.0107 0.0061 0.0035 0.0011 0.0001 83522 2657 0.0000 0.0738 0.0659 Compound Amount Factor To Find F Given A FIA 1.0000 2.1200 3.3744 4.7793 6.3528 8.1152 10.0890 12.2997 14.7757 17.5487 20.6546 24.1331 28.0291 32.3926 37.2797 42.7533 48.8837 55.7497 63.4397 72.0524 81.6987 92.5026 104.6029 118.1552 133.3339 241.3327 431.6635 767.0914 1358 2300 2400.0182 7471.6411 72145.6925 696010.5477 More Info Uniform Series Present Worth Factor To Find P Given A PIA 0.8929 1.6901 2.4018 3.0373 3.6048 4.1114 4.5638 4.9676 5.3282 5.6502 5.9377 6.1944 6.4235 6.6282 6.8109 6.9740 7.1196 7.2497 7.3658 7.4694 7.5620 7.6446 7.7184 7.7843 7.8431 8.0552 8.1755 8.2438 8.2825 8.3045 8.3240 8.3324 8.3332 8.3333 Sinking Fund Factor To Find A Given F AIF 1.0000 0.4717 0.2963 0.2092 0.1574 0.1232 0.0991 0.0813 0.0677 0.0570 0.0484 0.0414 0.0357 0.0309 0.0268 0.0234 0.0205 0.0179 0.0158 0.0139 0.0122 0.0108 0.0096 0.0085 0.0075 0.0041 0.0023 0.0013 0.0007 0.0004 0.0001 Capital Recovery Factor To Find A Given P A/P 1.1200 0.5917 0.4163 0.3292 0.2774 0.2432 0.2191 0.2013 0.1877 0.1770 0.1684 0.1614 0.1557 0.1509 0.1468 0.1434 0.1405 0.1379 0.1358 0.1339 0.1322 0.1308 0.1296 0.1285 0.1275 0.1241 0.1223 0.1213 0.1207 0.1204 0.1201 0.1200 0.1200 0.1200
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The capitalised worth of a specific project or investment provides a rough estimate of the project's current equivalent cost. The anticipated yearly expenses, the annual interest rate, or the capital opportunity cost all have an impact on the capitalised value.

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