the purpose of its maintenance. Then the company operated it, so the cost of operation and maintenance at the end of the first three months was 2.5 million dinars, and the cost of operation and maintenance continued to increase regularly by half a million dinars every three months until the end of the third year. What is the value of the current economic equivalent at the start of use for operating and maintenance costs, if you know that the interest rate is 12% compounded every quarter e 6:05

the purpose of its maintenance. Then the company operated it, so the cost of operation and maintenance at the end of the first three months was 2.5 million dinars, and the cost of operation and maintenance continued to increase regularly by half a million dinars every three months until the end of the third year. What is the value of the current economic equivalent at the start of use for operating and maintenance costs, if you know that the interest rate is 12% compounded every quarter e 6:05

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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Similar questions

The annual operating and maintenance (O&M) expenses of a company are $195,000 at EOY 1 decreasing by $8,500 per year until EOY 10. If the annual interest rate is 8.75%, what is the future equivalent of the O&M expenses at EOY 10?
In 2001, a sum of $3000 was invested at a rate of 6.5% per year for 18 years. a) Write an equation to model this investment and use it to find the value of the investment at the end of the 18 years. b) If there needed to be $15000 at the end of the 18 years, find the approximate interest rate(to nearest tenth) that would be required to accumulate this amount.
The annual cost of a certain service is $36,000 at EOY 1 which decreases by 5.5% per year for a period of 12 years. If the interest rate is 5.5% per year, what is the present equivalent of the annual cost at the beginning of year 1?
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
If a new car is valued at $24,400, what will its value be in 3 years if it depreciates 12.7% each year? Round your answer to the nearest cent. if necessary.
You are analyzing a property that popped up on CREXI. Real estate taxes and management services cost 42,362 and 31,563, respectfully. Other expenses are 15,369. If your company’s required return is 10%, what must the average annual rent be over the next five years for you to purchase the property at $400,000 and obtain that 10%? Expenses grow at 2.5% per year. A. 189,500 B. 198,400 C. 201,300 D. 192,700 E. 209,500
The price for a building was $ 125,000. How many months will it take to pay for the building if $ 25,000 is paid in advance and then $ 1,000 each month? Consider the compound interest rate of 9% per month.
Real repair costs on an investment are $30,249 per year growing at the inflation rate of 2%. The nominal discount rate is 4.1%. What is the present value of these costs over 4 years?
Net revenues at an older manufacturing plant will be $2 million for this year. The net revenue will decrease 15% per year for 5 years, when the assembly plant will be closed (at the end of Year 6). If the firm’s interest rate is 10%, calculate the PW of the revenue stream.

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