The operating and maintenance expenses for a mining machine are expected to be $13000 in the first year and increase by $900 per year during the 25-year life of the machine. What uniform series of payments would cover these expenses over the life of the machine? Interest is 9%/year compounded annually.
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- The maintenance expense on a machine is expected to be P75, 000.00 during the first year and to increase P20, 000.00 each year for the following ten (10) years. What present sum of money should be set aside now to pay for the required maintenance expenses over the ten-year period? (Assume 8% compound interest per year)The maintenance cost of a machine this year is expected to be P5, 000. The cost will increase P1, 000 each year for the subsequent 4 years. The interest is 15% compounded annually. What is the approximate worth of maintenance for the machine over the full 5 years?The maintenance expense on a machine is expected to be $5,000 during thefirst year and to increase $500 each year for the following ten years. Whatpresent sum of money should be set aside now to pay for the required maintenance expenses over the ten-year period? (Assume 8% compound interest per year.)
- A house is expected to have a maintenance cost of $1000 the first year. It is believed that the maintenance cost will increase $500 per year. The interest rate is 6% compounded annually. Over a 10-year period, what will be the approximate effective annual maintenance cost (in $, roundoff to 2 decimal places)?The maintenance cost for a sewing machine after one year is expected to be P500. The cost will increase by P50 each year for the subsequent 9 years. The interest is 9% compounded annually. What is the present worth of maintenance for the machine over the full 10 years.The annual maintenance cost of a generator is P1000 after 1 year and it is estimated to increase by 10% each year for the subsequent 9 years. Find the present worth of the maintenance cost if the rate of interest is 15% compounded annually.
- An asphalt road requires a yearly maintenance beginning a year from now. For the 1st four years, it will be P 539,853 per year. For the next four years, it will be P 1,126,841 per year. On the succeeding four years, it will be 1,021,631 per year. If interest is 20% cpd. annually, what is the present value of the repair cost?An annual maintenance cost of a generator is P1000 after two years and it is estimated to increase by 10% each year for the subsequent 7 years. Calculate the total maintenance cost 2 years after the last payment.Annual maintenance cost for the machine is P 1,500 this year and estimated to increase 8% each year every year. What is the future worth of the maintenance cost for 8 years if interest is 8% /yr.
- An investment will cost $10,000 today for equipment plus expenses for labor andmaterials at a continuous annual rate of $2,000 per year for the next four years. Theproject will begin earning back money at a continuous rate of $3,000 per year beginningfour years from now and continuing forever. Assuming an annual effective rate i=2%,calculate the discounted payback period.Calculate the annual worth of a machine that has an initial cost of $35,000, a life of 10 years, and an annual operating cost of $10,000 for the first 4 years, increasing by 1000 per year hereafter. Use an interest rate of 15% per year.Webster Mining is considering the purchase of a new sorting machine. The quote consists of quarterly payments of $17,000 for 8 years at an annual interest rate of 6% (APR with quarterly compounding). If the first payment begins one quarter after date of purchase. What is the purchase price of the equipment?