How much must be invested annually at 3.5% interest during the life of the machine to pay off the maintenance costs?
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A machine estimated to have a life of 20 years is purchased. There is no maintenance required for the first 10 years but will require P 2000 per year for the second 10 years. How much must be invested annually at 3.5% interest during the life of the machine to pay off the maintenance costs?
A. P 820
B. P 825
C. P 830
D. P 835
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- 6. A contractor can buy dump trucks for P800,000.00 each(surplus) or rent them for P1,189 per truck per day. The truck has a salvage value of P100,000 at the end of its useful life of 5 years. Annual cost of maintenance is P20,000.00. If money is worth 14% per annum, determine the number of days per year a truck must be used to warrant the purchase of the truck. A. 200. B. 199 C. 145 D. 102A research laboratory which requires P5M for original construction; P100k at the end of every year for the first 6 years and then P120T each year thereafter for operating expenses, and P500k every 5 years for replacement of equipment with interest at 12% per annum. What is the cost of perpetual operation? a. P917,771.854 b. P471,936.467 c. P971,936.854 d. P1,411.140.7329. Two machinery alternatives are described below. Complete the table below, assuming an interest rate of 6% and a useful lifetime of 8 years. Alt. 1: The initial purchase price of the machine is $25,000. The salvage value at the end of the useful life will be $5000. Maintenance costs are $2000 for the first year and remains same for the rest of the life. Alt.2 2: The machine is leased for an initial payment of $2000 plus annual payments of $3500. There is no salvage value. A maintenance contract is purchased for a single payment of $10,000 at the start of the lease period. Alt 2 PWB PWC NPW State selection criteria and make decision on what alt. to select?
- Consider a machine that costs $1000 to purchase. The machine creates an annual operating expense of $500 at the end of first year, which is going to increase by $50 in each year thereafter. The salvage value of this machine is $200, independent of the usage period. Find the economic life of this machine under nominal MARR 25%, compounding annually. A 8. B. 6.An equipment was purchased now at P10,000,000.00 prevailing interest rate is 10% per year. Solve the following cases capitalized cost: Answer no. 3 only Solve for case 1 if the projected maintenance cost will total P5,000,000.00 for 10 years. Use 10% as worth of money or interest rate. Solve for case 2 if the machine on item 1.1 is to be replaced every end of 10 years at 10% worth of money. Salvage cost is zero. Solve for case 3 using the above value on case 1 and 2 at 10%A company is considering purchasing a machine for P210,000. The machine will generate an after-tax net income of P20,000 per year. Annual depreciation expense would be P15,000. What is the payback period for the new machine? Group of answer choices 10.5 years. 6 years. 42 years. 4 years. 14 years.
- A machine was purchased with an amount of P375,000.00 and a modification cost of P100,000.00 after 12 years. It needs regular maintenance that cost P15,850.00 per year. A software renewal cost of P5,501.00 every two years. What is the total capitalized cost that needs to prepare for the acquisition of this asset in pesos given that the interest rate is 0.13 annually?I have purchased a machine worth P1,622,721.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money shoukd be prepare today to finance the requirement if the interest rate is 0,10 compounded quarterly?A certain machine costs GH¢25000 and lasts 6 years, after which time it has a scrap valueof GH¢5000. Annual maintenance costs are GH¢800. If money is worth 8% per annum, and the capitalized cost of the machine.
- Machine X has an intial cost of $10,000. It is expected to last 12 years, to cost $200 per year to maintain and to have a salvage value of $1,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 8% interest is most nearly ___________. A. $1,160 B. $1,507 C. $1,580 D. $1,475 E. None of the aboveAn equipment was purchased now at P10,000,000.00 prevailing interest rate is 10% per year. Solve the following cases capitalized cost: Solve for case 1 if the projected maintenance cost will total P5,000,000.00 for 10 years. Use 10% as worth of money or interest rate. Solve for case 2 if the machine on item 1.1 is to be replaced every end of 10 years at 10% worth of money. Salvage cost is zero. Solve for case 3 using the above value on case 1 and 2 at 10%The data associated with operating and maintaining an asset are shown below. The company manager has already decided to keep the machine for 1 more year (i.e., until the end of year 1), but you have been asked to determine the cost of keeping it 1 more year after that. At an interest rate of 10% per year, estimate the AW of keeping the machine from year 1 to year 2. Operating Cost, $ per Year Market Value, $ 30,000 25,000 14,000 10,000 Year 0 1 2 3 -15,000 -15,000 -15,000