QuestionFor an engineering project, the following payments have been estimated to be paid attheir certain time as folow:1. The initial construction cost is $100000 which should be paid at the beginningof the construction period (time-0).2. Extra expenditures are planned to be paid during operation period, which are:-$ 20000 at the end of the first month,- S10000 at the end of the second month which decreases by $1000 at the endof every month of the next 8 months.- $5000 at the end of the tenth month,- Twenty uniform payments of $1000 at the end of each of the successivemonth starting from the end of the first year.If the interest rate is %12 compounded monthly, draw the cash flow diagram andfind the present worth of the project.

The cash flows refer to the inflow and outflow of cash from the business and any entity. The cash…

Question For an engineering project, the following payments have been estimated to be paid at their certain time as folow: 1. The initial construction cost is $1000000 which should be paid at the beginning of the construction period (time-0). 2. Extra expenditures are planned to be paid during operation period, which are: -$ 20000 at the end of the first month, - $10000 at the end of the second month which decreases by $1000 at the end of every month of the next 8 months, - S5000 at the end of the tenth month. - Twenty unitorm payments of $1000 at the end of each of the successive month starting from the end of the first year. It the interest rate is %12 compounded monthly, draw the cash flow diagram and find the present worth of the project

Question For an engineering project, the following payments have been estimated to be paid at their certain time as folow: 1. The initial construction cost is $1000000 which should be paid at the beginning of the construction period (time-0). 2. Extra expenditures are planned to be paid during operation period, which are: -$ 20000 at the end of the first month, - $10000 at the end of the second month which decreases by $1000 at the end of every month of the next 8 months, - S5000 at the end of the tenth month. - Twenty unitorm payments of $1000 at the end of each of the successive month starting from the end of the first year. It the interest rate is %12 compounded monthly, draw the cash flow diagram and find the present worth of the project

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 8DQ: Describe the cost formula for a strictly fixed cost such as depreciation of 15,000 per year.

See similar textbooks

Similar questions

A project has been defined that consist of 13 activities for which the estimated cost and duration have been defined (TABLE). Afterfour-andahalf monthfthe activates A, B, D. E, G are completed and Fis one half complete nd (H) is three -fourth complete and (C) is half complete The incurred cost to date is 1720009 Apply your knowledge of camed value to calculate the status of this project in terms of the schedule and the budger? Activity 中 Cost 100000 25600 500000 4S000 150000 29000 180000 84000 840000 700000 470000 Jan Feb Mar May Jun H. 45000
Q3: An engineer determined the payback period of the project contract to be 9 years. The following table presents the project contact cost information: Annual cost First cost 15 M Salvage 5 M Contract 3M Ifi-13%, do you agree with that an engineer, and why?
Please answer ASAP if you can please. Thank you! Please Please write expression or formula used Set up expression initially with functional notation (e.g.,(P/F,I,n))
Consider the project balances in the table below for a typical investment project with a service life of four years. An Project Balance - $13,000 - $13,000 - 11,500 CO n 0 1 2 3 4 - 2,425 (a) Determine the interest rate used in computing the project balance. The interest rate is %. (Round to the nearest whole number.) - 9,500 - 8,500 100
Please answer ASAP if you can please. Thank you! Please Please write expression or formula used Set up expression initially with functional notation (e.g.,(P/F,I,n))
Please answer ASAP if you can please. Thank you! Please Please write expression or formula used Set up expression initially with functional notation (e.g.,(P/F,I,n))
Jay is currently evaluating a project with the following estimated investment requirements ($ millions) by year (starting in year 0): investment year investment 0 11.2 1 16.6 2 15.8 3 11.3 4 18 The estimated revenues ($ millions) from the project, expected to begin at time 3, are given in the table below: \ investment year reveune 0 13.3 1 14 2 8.4 3 14.7 4 9.9 5 8.4 6 13.4 To account for the different risk characteristics throughout the project's life, Jay has determined that a hurdle rate of 24% should be used beginning at time 0, while 30% should be used beginning in period 5. Determine the NPV for the project. NPV =
The following table contains a summary of how a project's balance is expected to change over its 5 year service life at 10% interest. End of Period Project Balance -$1,000 -1,500 600 900 3 1,500 2,000 Which of the following statements is incorrect? Select one: a. The required additional investment at the end of period 1 is $500 b. The net future of the project at 10% interest is $2,000 c. Within 2 years, the company will recover all its investments and the cost of funds (interest) from the project d. The net present worth of the project at 10% interest is $1,242 0110 45
c. The bridge project must that is estimated to require 2 years to complete is about to go underway. The bridge is projected to cost $48 million. It will need to begin construction in 18 months. Rights-of-way acquisition, surveying, and permitting have already been completed and paid for by the program. There will be 2 additional project phases: 1) planning & design, 2) construction. Each will require payment at the end of the phase. The projected cost of the 1st phase of the project is $5.5 million. The 1st phase is expected to need the entire 18 months prior to the start of construction and must be completed before construction can begin. The 2nd phase is projected to cost the remaining $42.5 million. Its construction is also expected to be completed at the end of the 2-year period following planning & design. There will need to be a payout of 30% of the cost of construction at the end of the 1st year of construction project. The remaining 70% will be paid at the completion…
The Dry Dock is considering a project with an initial cost of $105,271 and cash inflows for Years 1 to 3 of $37,200, $54,600, and $46,900, respectively. What is the IRR?
I need the answer quickly
EncryptCo is considering a project with a $50,000 first cost that returns $12,000 per year. Assume that it will have a salvage value of $6500 at the end of its service life. The MARR is 12 percent. (a) Calculate the payback period for this project. (b) Calculate the discounted payback period for this project. Use Excel to do this and include the Excel output in your Assignment report.