1. Use the provided chart to solve this problem. Show your work. 1. The maintenance expense on a piece of machinery is estimated to be as follows:YearMaintenance Cost123$150 $300 $4504$600If the interest rate is 8%, the equivalent annual maintenance cost is? factor namesingle paymentcompound amountsingle paymentpresent worthuniform seriessinking fundcapital recoveryuniform seriescompound amountuniform seriespresent worthuniform gradientpresent worthuniform gradientfuture worthuniform gradientuniform seriesconvertsP to FF to PF to AP to AA to FA to PG to PG to FG to Asymbol(F/P, i%, n)(P/F, 1%, n)(A/F, i%, n)(A/P, i%, n)(F/A, 1%, n)(P/A, i%, n)(P/G,i%, n)(F/G,1%, n)(A/G, i%, n)formula(1 + i)"(1 + i)-¹i(1 + i)" - 1i(1+i)"(1+i)n-1(1+i)n-1i(1+i)n-1i(1+i)n1-i(1+i)n-11² (1+i)nni(1+i)n(1+i)n-1nin(1+i)n-1

The equivalent uniform annual cost is the annual maintenance cost that is uniform in the life of the…

Answered: The maintenance expense on a piece of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by $500 per year through year 10. At an interest rate of 10% per year, the present worth of the maintenance cost is nearest to A.$51,790 B.$42,170 C.$46,660 D.$38,220
1. Maintenance costs for a small bridge with an expected 50-yr life are estimated to be P 2,000.00 each year for the first 5 years, followed by a P10.000 expenditure in the 15th year and a P 20,000 expenditure in the 25th year. IfI 12% per year, what is the equivalent uniform annual maintenance costs over the entire 50-yr period? a. P 1,230 b. P 852 C. P 936 d. P 1,159
The maintenance cost of a certain equipment is P80,000.00 per year for the first 5 years, P120,000.00 per year for the next 5 years, cost of overhaul at the end of the 5th year and the 8th year is P280,000.00. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually? Answer. P149,403.62
The maintenance cost in year 1 is $23000, increasing by 7% each year. What is the present worth of this over 9 year period at an interest rate of 13% per year? Select one: O a. 18918.92 Ob. 148735.18 O c.153964.21 O d. 91246.65 O e. 20353.98
Question 2. I have purchased a machine worth ₱1,893,877.00. And it needs maintenance every 6 months starting from its purchased date for the first 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?
A computer purchased for $1200 will have a salvage value of $600 after 6 years. Annual maintenance charges are estimated to be $100. At an interest rate of 10%,what is the equivalent uniform annual cost? Select one: Oa $350 Ob.$298 Oc S220 O d. $440
To maintain a machine the company has to pay 3500$ annually for the 8 years, if the rate of interest is 9% what will be the present worth? Select one: a. 18840$ b. 19843$ c. 19372$
The maintenance cost of a certain equipment is P80,000.00 per year for the first 5 years, P120,000.00 per year for the next 5 years, cost of overhaul at the end of the 5th year and the 8th year is P280,000.00. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually?
The DPWH expects the cost of maintenance for a particular piece of heavy equipment to be P 50,000 in year 1, P 55,000 in year 2 and amounts increasing by P 5,000 through year 10. At an interest rate of 12% per year, the present worth of the maintenance cost is nearest to: P 583,837 P 421,685 P 383,782 P 221,678
Consider a machine that initially cost $6,000 and has these estimated annual expenses and market value: End of year Annual expenses, $ 2,000 2,000 2,000 3,000 3,000 Market value at end of Year, $ 5,200 4,200 1 2 3 3,200 2,200 1,200 4 5 If the MARR is 9% per year, determine its economic service life (Suppose an Economic Service Life occurs in the fourth or fifth year. Show Cash Flow Diagram for those years).
15. Given the following table of financial data for an asset that was bought today and whose service life is 3 years, what is its economic service life if the interest rate is 8%? Market Value ($) 23,000 18,000 15,000 12,000 Year (n) O&M Cost ($) 3,400 4,500 5,700 1 3
A concrete vibrating equipment will be purchased for a cost of $107,425. After a useful life of 5 years it is assumed the equipment will be sold for $33,450. Assume interest of 7.5% for borrowing money, 4.3% for risk, and 2.2% as the equivalent interest rate fortaxes, insurance, and storage, Calculate the annual ownership cost and the cost per hour assuming the equipment will be used 1920 hr. /yr.

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The maintenance expense on a piece of machinery is estimated to be as follows: Year Maintenance Cost 1 2 3 $150 $300 $450 If the interest rate is 8%, the equivalent annual maintenance cost is? 4 $600