The maintenance costs of a new boiler are estimated as follows: P 600 per year for the first 3 years, P X at the 4th year, and P 1,800 per year starting at the 5th year up to the end of its 10 - year life. If the future value of all the maintenance is P 20,000, find the value of X. Money is 6% compounded annually.  a. P 3,901  b. P 3,230 c. P 14,374 d. P 13,268 show solution. do not use excel ans b

Q: A new drill press costs $12,000. It would potentially produce an additional $4,000 of revenue per…

A: Costs = $12,000 Revenue = $4,000 Operating Expenses = $1,200 Time period = 8 years  Rate = 10%

Q: An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for…

A: Equivalent uniform annual cost is the annual cost of repairing, maintaining an asset over its useful…

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: Expenses for water treatment plant are expected to be $220,000 now, $110,000 in year one, and…

A: Annualised cost is cost of current year and interest cost of perpetual cost.

Q: The generator set requires no maintenance until the end of 2 years when P60,000 will be needed for…

A: Here, At the end of year 2 , maintenance cost is P60,000 From Year 3 to Year 7, Maintenance Cost is…

Q: 4. A newly-acquired equipment requires an annual maintenance costs of P10,000. If the annual…

A: Present value of cash flow is that amount which shown the current price of future value at some…

Q: ve purchased a machine worth P1,564,748.00. And it needs maintenance at the end of every 6 months…

A: Present value of the money can be found by the interest rate and period given by using the formula.

Q: A machine costs $20,000 and has a 5-year useful life. At the end of the 5 years, it can be sold for…

A: Equivalent  annual worth is the annual cost of owning ,operating and maintaining and asset over its…

Q: 2. Two equipment are to be evaluated. Equipment A cost P500,000 will last for 20 years and have a…

A: Increment cost is 1.8 times and Incremental production rate is 2 times so Equipment B is more…

Q: The DPWH expects the cost of maintenance for a particular piece of heavy equipment to be P 50,000 in…

A: Present worth (PW) is a sum of PV of all the cashflows. Discounting is a technique which is used to…

Q: A certain machine costs GH¢25000 and lasts 6 years, after which time it has a scrap value of…

A: A capitalized cost of an asset is the cost incurred on an asset to put it to use. Capitalized cost…

Q: A new machine is expected to save $33,400 annually in labor can be justified for the purchase of…

A: In this we need to find out the Present value of savings.

Q: A public school is being renovated for BD13.5M. The annual value of benefits to be generated from…

A: Payback period is the period within which the initial investment is recovered fully.   Payback…

Q: 3% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include…

A: An item of expenditure on a capital asset that brings back the asset to its working position is…

Q: A computer purchased for $1200 will have a salvage value of $600 after 6 years. Annual maintenance…

A: EUAC or Equivalent uniform annual cost is the annual cost associated with operating and maintaining…

Q: .Calculate the NPV method and discount rate of 12%

A: Net Present Value (NPV) is a capital budgeting technique used for finding the profitability of the…

Q: Maintenance costs for machine increase by $2,000/year over the 5-year. The initial maintenance cost…

A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

Q: Maintenance of a small building amount to P 100,000 every year for the next 5 years and will…

A: Annual maintenance = P 100000 for 5 years and P 150000 afterwards forever Interest rate = 6%

Q: A research laboratory which requires P5M for original construction; P100k at the end of every year…

A: Original construction cost =5,000,000 Annual operating cost from year 1 to 6 = 100,000 Annual…

Q: I have purchased a machine worth P1.862.585.00. And it needs maintenance at the end of every 6…

A: Purchase Price = 1,862,585 Maintenance Cost = 2% of Purchase Price = 2% * 1.862,585 = 37,251.70…

Q: #1: An investment will cost $10,000 today for equipment plus expenses for labor and materials at a…

A: Discounted payback period is a capital budgeting tool. Here we look at the time period that it takes…

Q: A 1000ft (one lane) asphalt road costs P3.8M. It requires no upkeep until the end of 3 years when…

A: Time Period 20 Initial Cost P 38,00,000.00 Repair Cost at the end of 3rd year      P 80,000.00…

Q: Consider a machine that initially cost $6,000 and has these estimated annual expenses and market…

A: Data Given: Initial cost of Machine= $6000 MARR =9% Required:: Economic service life = ?

Q: Given a 10% interest rate, what is the equivalent uniform annual worth of a system, given the…

A: The equal annual net cash flow is known as the equivalent uniform annual worth. It is calculated by…

Q: P 1

A: that a new machine will be purchased for  $ 60000, and will save income $ 10000, with required rate…

Q: A company buys a printing machine for 21,000. It is expected for that machine to generate 3000…

A: Net present value refers to the difference between the cash inflows and outflows during the year.…

Q: The maintenance cost in year 1 is $23000, increasing by 7% each year. What is the present worth of…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A building is to be paid indefinitely at the rate of 6%. The building's price is P1M if paid in…

A: SOLUTION- Compounding is done by the lenders when they provide interest on amount which includes…

Q: A machine has a useful life of 10 years. It requires a semi- annual operating cost of $3,000 for the…

A: Useful life = 10 yearsSemi-annual operating cost = $3000Number of years = 4Growth rate = 6%Interest…

Q: crete road requires no upkeep until the end of 3 years when P54, 000 will be needed for repairs.…

A: The annual cost of owning, operating, and maintaining property for the rest of its life is known as…

Q: A bridge with an initial cost of P50,000,000 has a life of 20 years. The bridge must be partially…

A: In this we have to calculate present value of all cost.

Q: A constructed bridge requires no upkeep until the end of 2 years when P60,000 will be needed for…

A:

Q: n equipment has a maintenance cost of P20,000 a year for two years, increased by P40,000 at the end…

A: In this we have to find out the present value and find out the semi annual payment for that.

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.