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
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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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.)

Transcribed Image Text:2/26/23, 3:10 PM
N
1
2
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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
Expert Solution

Step 1
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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