rete pavement on a street would cost P10,000 and would last for 5 years with negligible repairs. At the end of each 5 years. P1000 would be spent to remove the old surface before 10,000 is sent again to lay a new surface. Find the capitalized cos

Q: The construction cost of a permanent water park is $550,000. Annual maintenance and operation costs…

A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the other…

Q: A used car can be kept for two more years and then sold for an estimated value of $3000, or it can…

A: The present value calculation is done in finance in order to compare it with the future cashflows.…

Q: It costs P50,000 at the end of each year to maintain a section of Kennon road in Baguio City. If mor…

A: Value of money changes with time and amount invested and money can be earned elsewhere by investing…

Q: If a machine costs $125,000 and has a life of 7 years with a salvage value of 5% of the original…

A: The net cash flow = $4,700 per month - $2,500, = $2,200 per month or $26,400 per year.

Q: John's cafe is considering the purchase of a waffle maker that cost $10,000. The waffle maker has an…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: Ballard MicroBrew is considering the purchase of an automated bottling machine for $55,000. The…

A: Operating cost of old machine$14000Operating cost of new machine$6,000Cost of the new…

Q: A highway bridge is being considered for replacement. The new bridge would cost $X and would last…

A: To find the maximum acceptable cost (X) of the new bridge, we need to compare the present worth of…

Q: It will cost $4,500 to acquire a small ice cream cart. Cart sales are expected to be $3,700 a year…

A: Payback period is the period required to recover initial investment of the project.The payback…

Q: What is the present worth of all the damages for 15 years?

A: Present Worth: It is the current worth of future annual cash flows streams or future sum of money.…

Q: The Department of Public Works is trying to decide between "patching" a road or repaving it…

A: Net present value is used to calculate the existing value of future cash flows for decision making.

Q: A highway bridge is being considered for replacement. The new bridge would cost $X and would last…

A: The maximum acceptable price would be the cost of existing bridge and also the benefit from the new…

Q: A firm is looking at a new project requiring a machine that would cost $500,000.The cost will be…

A: Salvage value = $125,000Tax rate = 23%

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A: The cost of any project or asset is capitalized if the benefits from such cost are going to be…

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A: Annuity: this is used in case of a future annuity – suppose an equal sum of money is invested in the…

Q: he required investment cost of a new, large shopping center is $52 million. The salvage value of the…

A: Given,  Investment=$52million  Salvage value=$18million   Project life=18 years   Annual operating…

Q: 1.In a window and door manufacturing company, to justify the viability of a production line…

A: The correct option is  b. $60,000 Please see the next step for the solution

Q: A new highway is to be constructed. Design A calls for a concrete pavement costing $90 per foot with…

A: Introduction: This problem has two options (Design A & Design B) & the best one has to be…

Q: A new highway is to be constructed. Design A calls for a concrete pavement costing P3600 per foot…

A: The present value of a projected amount of money or financial instrument with a predetermined rate…

Q: what is the after tax salvage value?

A: Information Provided: Initial costs = $190,000 Maintenance costs = $34,000 Life = 3 years…

Q: Your firm needs a computerized tool lathe which cost $49000 and requires $119000 in maintenance for…

A: Given information: Cost of computerized tool is $49,000 Maintenance cost is $119,000 Tax rate is 34%…

Q: Athena Books Company is contemplating the installation of a wastewater recycling system. The amount…

A: Given Details:

Q: A city is spending $20.3 million on a new sewage system. the expected life of the system is 50…

A: We can calculate the capitalized cost by using the data provided in the question. We can see that…

Q: private gym is looking at a new set of sports equipment with an installed cost $465,000. This cost…

A: NPV is the time value based method of capital budgeting techniques and mostly used for selecting…

Q: Project Phoenix costs $1.25 million and yields annual cost savings of $300,000 for seven years. The…

A: Payback period: This method is used to calculate how many years a project will take to recover its…

Q: find the capitalized cost.

A: Capitalization cost is defined as those costs which become part of the actual asset price. These…

Q: A highway bridge is being considered for replacement. The new bridge would cost $X and would last…

A:

Q: Milling, Inc. is considering a new milling machine. The machine costs $125,000. They can received a…

A: NPV is calculated as the difference between the present value of cash inflow and cash outflow.

Q: A highway bridge is being considered for replacement. The new bridge would cost $X and would last…

A: Data given: New Bridge:: Cost = $X N= 24 years Annual  Maintenance = $24,000 Toll charge for each…

Q: A new project will cost $40,000 to fund today, and an additional $40,000 next year.  The device…

A: Net Present Value: It helps in analyzing the project's profitability and is computed from the…

Q: A proposal is being considered to improve an existing road connecting two medium size cities in West…

A: Cost-Benefit Method Comparing the anticipated or predicted costs and benefits (or opportunities)…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.