Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 5, Problem 35P
To determine

Calculate the capitalized value.

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A group of concerned citizens has establisheda trust fund that pays 7.5% interest, compoundedmonthly, to preserve a historical building by providing annual maintenance funds of $140,000 forever.Compute the capitalized equivalent amount for thesebuilding maintenance expenses.
Steve Company is considering replacing one of its machines. The available new model has a cost of $220,000, a 16-year life, and an AOC of $2,000. The machine must also be serviced every 4 years at a cost of $10,000. The machine can be salvaged at $45, 000. The MARR is 12%   How much annual net income must be realized from the machine to recover the capital investment?
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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