SITUATION1: Five hundred pesos (P500.00) is deposited monthly to an account earning 7% compounded monthly. (a) what is the amount of the deposit after five years? (b) if the monthly deposit after two years is increased to P1,000. What is the amount of the deposit after five years? (c) repeat question () if the interest is 18% compounded monthly? SITUATION2: Interpret the figure below: find (a) Present worth of all additional maintenance cost, (b) Present worth of all cost, (c) Equivalent uniform annual cost (EUAC). Note, EUAC is the sum of all expenses such as first cost, operation cost and other expenses. 0 1 2 3 4 5 6 7 8 9 10 11 12 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5.15 1.5 1.5 Initial cost: P20M Annual maintenance: P1.5M .*. 25 1,5 Additional Maintenance every 5 years: P3M Cost of money: 8.0% SITUATION3: Under the data collected from the office of Department of Transportation and DPWH over the last 5 years indicate that for each fatality, there are 40 non-fatal injury accidents ($1500 present cost each) and 300 property damage accidents ($2000 present cost each). What is the breakeven value of statistical re (VSL) needed to LIFE justify a highway project if i is 8%? The death rate on a particular three-lane road is 8 per 100 million vehicle-miles. Adding a lane would reduce this to 5 per million, and other accidents would cost $1.5M per mile to build, and annual maintenance would be 3% of the first cost. Assume that the lane would last 40 years. The road carries 10000 vehicle per day. Use reduction factor of 3/8 for all accidents. (Non-CE students no need to answer this item).
SITUATION1: Five hundred pesos (P500.00) is deposited monthly to an account earning 7% compounded monthly. (a) what is the amount of the deposit after five years? (b) if the monthly deposit after two years is increased to P1,000. What is the amount of the deposit after five years? (c) repeat question () if the interest is 18% compounded monthly? SITUATION2: Interpret the figure below: find (a) Present worth of all additional maintenance cost, (b) Present worth of all cost, (c) Equivalent uniform annual cost (EUAC). Note, EUAC is the sum of all expenses such as first cost, operation cost and other expenses. 0 1 2 3 4 5 6 7 8 9 10 11 12 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5.15 1.5 1.5 Initial cost: P20M Annual maintenance: P1.5M .*. 25 1,5 Additional Maintenance every 5 years: P3M Cost of money: 8.0% SITUATION3: Under the data collected from the office of Department of Transportation and DPWH over the last 5 years indicate that for each fatality, there are 40 non-fatal injury accidents ($1500 present cost each) and 300 property damage accidents ($2000 present cost each). What is the breakeven value of statistical re (VSL) needed to LIFE justify a highway project if i is 8%? The death rate on a particular three-lane road is 8 per 100 million vehicle-miles. Adding a lane would reduce this to 5 per million, and other accidents would cost $1.5M per mile to build, and annual maintenance would be 3% of the first cost. Assume that the lane would last 40 years. The road carries 10000 vehicle per day. Use reduction factor of 3/8 for all accidents. (Non-CE students no need to answer this item).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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