14. Maintenance costs on a bridge are $5,000 every five years starting at the end of...
14. Maintenance costs on a bridge are $5,000 every five years starting at the end of year 5. For analysis purposes, the bridge is assumed to have an infinite life. What is the Capitalized Equivalent (CE) cost of these infinite payments, assuming an annual interest rate of 7% compounded annually? Show all work.
Homework Answers
Equivalent annual cost:-
= 5000*(A/F,7%,5)*(P/A,7%,infinity)
= 5000*0.17389*1/0.07
= 12420.70
Add Answer to:
14. Maintenance costs on a bridge are $5,000 every five years
starting at the end of...
5) (17 points) Maintenance costs for a bridge are cyclic with the following costs occurring over...
5) (17 points) Maintenance costs for a bridge are cyclic with the following costs occurring over a 5-year period. MARR is 10% per year compounded annually. EOY 2 3 5 Maintenance S50 million $75 million $75 million $75 million $150 million Cost 1 4 a) (14 points) Compute an equivalent uniform annual cost over a single 5-year maintenance cycle. b) (3 points) It is anticipated that the sequence of costs will repeat every 5 years forever. If so, determine the...
ASSIGNMENT 1. Determine the capitalized cost of an equipment costing P2M with and annual maintenance of...
ASSIGNMENT 1. Determine the capitalized cost of an equipment costing P2M with and annual maintenance of P200,000.00 if money is worth 20% per annum. 2. A dam will have a first cost of $5,000,000 an annual maintenance cost of $25,000 and minor reconstruction costs of $100,000 every five years. At an interest rate of 8% per year, the capitalized cost of the dam is? 3. A P100,000, 6% bond, pays dividend semi-annually and will be redeemed at 110% on July...
1. A printing machine costs P400,000 to purchase with a life of 10 years with no...
1. A printing machine costs P400,000 to purchase with a life of 10 years with no salvage value .If the rate of interest is 10% per annum. compounded annually ,compute the equivalent uniform annual cost of the machine if it will cost P100,000 per year to operate ? 2. The first cost of an electric rebar bender is P324,000 and a salvage value of P50,000 at the end of its life for 4 years .Money is worth 6% annually .If...
Two contractors submitted the following cost estimates for a proposed bridge: Bridge A Bridge B First...
Two contractors submitted the following cost estimates for a proposed bridge: Bridge A Bridge B First Cost P20M P27M Life 20 years 30 years Salvage Value P500,000 P750,000 Annual Upkeep P160,000 P50,000 Repairs P1.5M every 4 years P1M every 6 years If interest is 7.5% compounded annually, which bridge is cheaper in terms of its capitalized cost? and by how much?
Capitalized cost is defined as the present worth of infinite expenditures to construct, maintain and renew all alte...
Capitalized cost is defined as the present worth of infinite expenditures to construct, maintain and renew all alternatives. This method is usually used in comparisons involving very long term considerations. On a capitalized cost basis, the income or expenditures are calculated as though they continue in perpetuity or, in other words, forever. The capitalized basis of evaluation consists of finding a single sum in the present whose return at a given rate of interest will be equivalent to expenditures repeated...
1) You receive $5,000 at the end of every year for three years. What is the...
1) You receive $5,000 at the end of every year for three years. What is the present value of these receipts if you earn eight percent compounded annually 2)What amount will be accumulated in four years if $10,000 is invested today at six percent interest compounded annually?
One maintenance contract is free for two years and is followed by three years of $5,000...
One maintenance contract is free for two years and is followed by three years of $5,000 payments, while the other is $2,300 per year for five years the contract are equivalent if the interest rate is ?
Jean receives annuity payments at the end of every six months. If she deposits these payments...
Jean receives annuity payments at the end of every six months. If she deposits these payments in an account earning interest at 9% compounded monthly, what is the equivalent semi-annually compounded rate of interest? What sum of money must be deposited at the end of every 3 months into an account paying 6% compounded monthly to accumulate to $25,000 in 10 years? Irina deposited $150 in a savings account at the end of each month for 60 months. If the...
Question 3 1 pts A bridge design firm is performing an economic analysis of two mutually...
Question 3 1 pts A bridge design firm is performing an economic analysis of two mutually exclusive designs for a highway overpass. The steel girder option has an initial cost of $2.03 million, and the concrete option has an initial cost of $2.43 million. Every 25 years, the steel bridge must be painted at a cost of $420,000, and all other maintenance costs are the same for both options. The steel bridge is expected to last 50 years, and concrete...
Problems The following are exercises in future (terminal) values: a. At the end of three years,...
Problems The following are exercises in future (terminal) values: a. At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? b. At the end of five years, how much is an initial $500 deposit followed by five year-end, annual $100 payments worth, assuming a compound annual interest rate of (i) 10 per- cent? (ii) 5 percent? (iii) 0 percent?...
5) (17 points) Maintenance costs for a bridge are cyclic with the following costs occurring over a 5-year period. MARR is 10% per year compounded annually. EOY 2 3 5 Maintenance S50 million $75 million $75 million $75 million $150 million Cost 1 4 a) (14 points) Compute an equivalent uniform annual cost over a single 5-year maintenance cycle. b) (3 points) It is anticipated that the sequence of costs will repeat every 5 years forever. If so, determine the...
Capitalized cost is defined as the present worth of infinite expenditures to construct, maintain and renew all alternatives. This method is usually used in comparisons involving very long term considerations. On a capitalized cost basis, the income or expenditures are calculated as though they continue in perpetuity or, in other words, forever. The capitalized basis of evaluation consists of finding a single sum in the present whose return at a given rate of interest will be equivalent to expenditures repeated...
Jean receives annuity payments at the end of every six months. If she deposits these payments in an account earning interest at 9% compounded monthly, what is the equivalent semi-annually compounded rate of interest? What sum of money must be deposited at the end of every 3 months into an account paying 6% compounded monthly to accumulate to $25,000 in 10 years? Irina deposited $150 in a savings account at the end of each month for 60 months. If the...
Question 3 1 pts A bridge design firm is performing an economic analysis of two mutually exclusive designs for a highway overpass. The steel girder option has an initial cost of $2.03 million, and the concrete option has an initial cost of $2.43 million. Every 25 years, the steel bridge must be painted at a cost of $420,000, and all other maintenance costs are the same for both options. The steel bridge is expected to last 50 years, and concrete...
Problems The following are exercises in future (terminal) values: a. At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? b. At the end of five years, how much is an initial $500 deposit followed by five year-end, annual $100 payments worth, assuming a compound annual interest rate of (i) 10 per- cent? (ii) 5 percent? (iii) 0 percent?...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago