The highway department expects the maintenance cost for a piece of heavy construction equipment to be 5,000 Ghana cedis in a year 1, 5500 in year 2 and to increase by 10%annually through year 10. At an interest rate of 15% per year, show up he cash flow diagram for the maintenance programme and determine the present worth of 10 years of maintenance costs

Q: n investment project has annual cash inflows of $27,000. The project requires an initial investment…

A: Payback period is the no. of years required to recover the initial amount invested.

Q: Maintenance cost for a small bridge expected to last for 60 years is estimated to be Php1,000 each…

A: The yearly cost of owning, operating, and sustaining an asset throughout its entire life is referred…

Q: Calculate the Internal rate of Return of the project

A: Meaning of Internal rate  of return Means where present value of cash inflows = present value of…

Q: Calculate the annual cost of the project that has an initial cost of P2.5 Million and an additional…

A: Annual Capitalized Project Cost is actually the total present value of  (i) Annual Operating Costs…

Q: An investment project provides cash inflows of $1325 per year for eight yea payback period if the…

A: Year cash flow 1                            1                       1,325.00 2…

Q: A capital investment of Php 508,000 on a project can produce an annual revenue of Php 383,000 for 5…

A: Capital investment = 508,000 Annual Revenue = 383,000 N = 5 years Salvage Value = 7% of capital…

Q: An investment that costs $50,000 will return $15,000 operating cash flows per year for five years.…

A: NET PRESENT VALUENet Present Value is one of the Important Capital Budgeting Technique. Net Present…

Q: flows of $21,200 for nine years costs $120,000 today. What is the NPV for the project if the…

A: Net present value or NPV is excess of present value of cash inflows over present value of cash…

Q: An investment project costs $50,000 and has annual cash flows of $3,500 for 20 years. What is the…

A: Discounted Payback period refers to one of the modern techniques which measure the time that the…

Q: A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs…

A: Calculate the capitalized equivalent of the perpetual annual maintenance costs as follows:

Q: A project has estimated annual net cash flows of $80,000. It is estimated to cost $600,000.…

A: Introduction:- Payback period is a financial metric used to measure the length of time it takes to…

Q: Based on the following table, what is the approximate Internal Rate of Return (IRR) for a project…

A: The objective of this question is to calculate the Internal Rate of Return (IRR) for a project based…

Q: A project has annual cash flows of $5,000 for the next 10 years and then $9,000 eachyear for the…

A: Working of the NPV is presented: Note: Cash outflows have been calculated using IRR because it is…

Q: Initial cash outlay is $50,000.  The required rate of return is 9%.  The length of time of the…

A: Solution:Net Present Value (NPV) means the net present value of cash inflows from the project after…

Q: Project A requires an initial investment of $20,500, a cash inflow of $15,500 in the first year, and…

A: The payback period is a simple measure that indicates how long it takes to recoup the original…

Q: Park Co. is considering an investment that requires immediate payment of $27,000 and provides…

A: Payback period can be defined as the time period in which the  investment made for the project can…