The average annual cost of damages caused by flooding to a subdivision near Pasig River is estimated at P 5M. To build a gravity dam to protect the area from flooding would cost P 25M and would cost an annual maintenance cost of P 2M. Interest is 11%. How many years will it take for the dam to pay itself?

Q: A project has a $53000 first cost that returns $5000 per year over its 15 year life. It has a $12000…

A: The payback period, a monetary metric, estimates how long it will take an investment to recover its…

Q: The following are the costs for one of the alternatives to construct a new bridge: Construction cost…

A: We are given the costs of an alternative to construct a new bridge.  The initial construction cost…

Q: 5b. An elective project is currently under review. It requires an initial investment of $116,000 for…

A: The rate which makes the total discounted worth of cash flows equal to zero is called IRR or…

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A: Present worth  The present value method refers to calculating the present value of future cash. The…

Q: Ive ye is the payback period for - If their acceptance peric

A: The Payback period is the amount of time needed to earn back the cost of an investment. This method…

Q: What is the interest earned on a project that requires an initial investment of $ 10,000 and…

A: Initial investment (PV) = $ 10,000 Future value (FV) = $ 20,114 Period (n) = 5 Years

Q: A flood control project with a life of 14 years will require an investment of $57.000 and annual…

A: Benefit to cost ratio: It is ratio of present value of the benefits to present value of costs.

Q: A project has cost $50,000. The project is scheduled to complete three months from now and is…

A: Sunk cost is a cost which has already being incurred and cannot be recovered. For a continuing…

Q: An engineer developed a fee proposal that requests the owner pay $20,000 after 6 months of work and…

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Q: If you are a city engineer and you know that you will need $25 million in 3 years to' replace toll…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: A flexible pavement construction project is proposed. The estimated service life is 20 years. The…

A: NPV = -205000

Q: he average annual cost of damages caused by floods to certain subdivision located along Pasig River…

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

Q: Bill plans to open a service center. The equipment will cost $50,000. Bill expects the after-tax…

A: Profitability index (PI) is the ratio of the present value of the cash inflows from the investment…

Q: $100,000 of annual repair is needed to maintain a tunnel. if the interest rate earned on funds held…

A: The PV of a payment series is used to find out the actual worth of the payments assuming they are…

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.