5. Problem 5The purchase of a used pickup truck for $9,000 is being considered. Fuel and maintenance costs are$1,980 per year if the truck is driven 16,000 kilometers, and vary directly with mileage. Assume youwill keep and use the truck for 5 years. The salvage value after five years of use decreases (from theoriginal purchase price) by $0.05 per kilometer driven during that entire period.(a) Find the equivalent uniform annual cost, rounded to the nearest dollar, if the interest rate is 8%.(b) If the annual mileage is instead 24,000 km, what would the EUAC be?(c) If the annual mileage is instead 8,000 km, what would the EUAC be?

EUAC is the is equivalent uniform annual cost which is necessary to cover all cost involved in that…

The purchase of a used pickup truck for $9,000 is being considered. Fuel and maintenance $1,980 per year if the truck is driven 16,000 kilometers, and vary directly with mileage. Asu vill keep and use the truck for 5 years. The salvage value after five years of use decreases (f original purchase price) by $0.05 per kilometer driven during that entire period. a) Find the equivalent uniform annual cost, rounded to the nearest dollar, if the interest ra b) If the annual mileage is instead 24,000 km, what would the EUAC be? c) If the annual mileage is instead 8,000 km, what would the EUAC be?

The purchase of a used pickup truck for $9,000 is being considered. Fuel and maintenance $1,980 per year if the truck is driven 16,000 kilometers, and vary directly with mileage. Asu vill keep and use the truck for 5 years. The salvage value after five years of use decreases (f original purchase price) by $0.05 per kilometer driven during that entire period. a) Find the equivalent uniform annual cost, rounded to the nearest dollar, if the interest ra b) If the annual mileage is instead 24,000 km, what would the EUAC be? c) If the annual mileage is instead 8,000 km, what would the EUAC be?

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 new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is six years, at which time its market value will be zero. Annual receipts less expenses will be approximately $18,000 per year over the six-year study period. At MARR of 19%, calculate the return on investment of the project a. -35% b. -36% c. -37% d. none of the above
Machines that have the following costs are under consideration for a new manufacturing process. Compute the Equivalent Annual Worth with an interest rate of 8%, compounded semiannually. The machine last 4 years. First cost: $40,000 Semiannual Operating cost: $8,970 Semiannual incomes: $14,000 Salvage value: $10,000 a. EAW = $2,285 Ob. EAW = $175 O c. EAW = $1,958 O d. EAW $ 21,745
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2) The initial cost of a new m/c is $10,000. The annual operating cost is $1,000/yr for first 3 years, and then becomes $3,000/yr after that. The m/c needs a major repair at the end of 5th year, which costs $5,000. The m/c has 10 years useful life with salvage value of $4,000. Calculate EUAC for keeping the m/c for 10 years. (i=10%/yr)
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Please help me
Show the complete solution. Do not used Excel. Use manual method/handwritten 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.
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