what is the equivalent uniform annual expense over 30 years if the annual interest is 6%?
Q: An industrial firm can purchase a certain machine for $40.000. A down payment of $-1.000 is…
A: Annual equivalence method: It is a method which helps in evaluation of different projects in order…
Q: The expected annual maintenance expense for a new piece of equipment is $10,000. This is…
A: Introduction:- A new piece of equipment is projected to cost $10,000 per year in upkeep. Alternative…
Q: The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60,000 per…
A: The equivalent annual cost of maintenance (EAC) is the annual cost of maintaining an asset over its…
Q: The first-year maintenance cost for a new car is estimated to be $100, and it increases at a uniform…
A: Today’s worth of dollars at a later date is the Present Value of the dollar. For example, the value…
Q: An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for…
A: Equivalent uniform annual cost is the annual cost of repairing, maintaining an asset over its useful…
Q: The generator set requires no maintenance until the end of 2 years when P60,000 will be needed for…
A: Here, At the end of year 2 , maintenance cost is P60,000 From Year 3 to Year 7, Maintenance Cost is…
Q: Calculate the equivalent annual cost of fuel for mail trucks that records indicate costs $72,000 in…
A: Formula for Equivalent annual cost is: A = P+ G(1/i) - [n/(1+i)^n - 1]
Q: Maintenance expenses for a bridge on the Ohio River are estimated to be $20,000 per year for the…
A: Present value of an asset can be calculated by multiplying the future value by the discount factor.…
Q: Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor,…
A: Present Value of annuity = Annuity1+interest raten Present worth in Year 0 = Sum of present…
Q: The maintenance of a machine in a manufacturing plant currently costs a company $12,000 every year…
A: Solution- New Investment cost I=$30000 Rate R=7% PV of Annual Saving =S/(1+r)^n Cummulative Saving =…
Q: An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs.…
A: As you have asked multiple questions, we will solve the first question as per the policy presented…
Q: OM Construction Company must choose between two types of cranes. Crane A costs $600,000, will last…
A:
Q: A car can be purchased for ₱600,000 when new. These follow a schedule of annual operating expenses…
A: The replacement decision of a car or capital goods should be calculated by use of Equivalent uniform…
Q: worth 9% compounded annually, what was she equivalent uniform annual cost for the ten- year period?
A: Equivalent Uniform Annual Cost: It is the cost of operating, maintaining, and owning the asset…
Q: The maintenance cost of a certain equipment is P80,000.00 per year for the first 5 years,…
A: Annual cost for 5 years = P 80,000 Annual cost for next 5 years = P 120,000 Cost in 5th and 8th year…
Q: An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs.…
A: Equivalent Annual cost: Equivalent Annual cost (EAC) is the yearly expense of buying, working, and…
Q: A printing machine initially costs ₱141,000. It can be sold for ₱15,000 at the end of its 14-year…
A: Straight line depreciation rate = 1/14 x 100 = 7.14% double declining balance method rate 7.14% x 2…
Q: Metso Automation, which manufactures addressable quarter-turn electric actuators, is planning to set…
A: Amount at the end of 4 years can be calculated by multiplying the amount invested with future value…
Q: Coast-to-Coast Inc. is considering the purchase of an additional delivery vehicle for $30,000 on…
A: Net present value=Present value of annual net cash flows-Investment
Q: AM Express Inc. is considering the purchase of an additional delivery vehicle for $43,000 on January…
A: Net present value (NPV): Net present value is defined as the summation of the present value of cash…
Q: EXCEL, an equipment costing $100,000 has a useful life of 6 years. It has a resale value of $8,000.…
A: given information equipment costing = $100,000 useful life= 6 years resale value = 8000 annual cost…
Q: An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance…
A: Here we will use the concept of time value of money. As per the concept of time value of money the…
Q: Compute the unknown annual revenues to reach equilibrium on the cash flow series over the service…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Coast-to-Coast Inc. is considering the purchase of an additional delivery vehicle for $70,000…
A: The evaluations of different projects are done by the company. Before adding any investment, the…
Q: Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor,…
A: The present worth of the machine is operating cost is the present value of all future cash outflow
Q: An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs.…
A: Equivalent Annual cost: Equivalent Annual cost (EAC) is the yearly expense of buying, working, and…
Q: A parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…
A: Initial cost (C) = P 250000 First year revenue (R) = P 22000 Growth rate (g) = 5% n = 10 years r =…
Q: rmed in the fifth year so tha
A: Alternative A is the name of the option.It is also feasible to do the maintenance yourself at a cost…
Q: VITRAN Bus Services purchases diesel fuel from Domino Gas Supply. In addition to fuel cost, Domino…
A: The question is based on the concept of Cost Accounting.
Q: The cost to manufacture a component used in intelligent interface was $22,000 the first year. The…
A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…
Q: The overhead costs in a highly automated factory are expected to increase at an annual compound rate…
A: Given information is: The overhead costs in a highly automated factory are expected to increase at…
Q: AM Express Inc. is considering the purchase of an additional delivery vehicle for $48,000 on January…
A:
Q: the purpose of its maintenance. Then the company operated it, so the cost of operation and…
A: Due to time value of money, cashflows at different time periods cannot be compared directly. Time…
Q: Packaging equipment for Xi Cling Wrap costs $60,000 and is expected to result in end of year net…
A: Capital budgeting The variance between Cash inflow (PV) and cash outflow (PV) over a time period at…
Q: The Highway Department expects the cost of maintenance for a piece of heavy construction equipment…
A: The formula used as follows: Present worth=FV1+rn
Q: A building company plans to build a new warehouse. The cost of building the warehouse is an initial…
A: Initial Investment $ -15,00,000.00 Cost in 1st Quarter $ -2,50,000.00 Cost in 2nd…
Q: Maintenance cost for a small bridge with an expected 60 - year life are estimated to be $ 1,000 each…
A: Given information, R = interest Rate = 10% or 0.1 n = No. of years of expected life = 60 n1 = 5…
Q: An injection molding machine can be purchased and installed for $75,000. It has a GDS recovery…
A: The capital budgeting is a technique that helps to analyze the profitability of the project.
Q: The repair costs for some handheld equipment at the office of NAIA is estimated to be P 120,000 in…
A: Office needs to deposit the amount that is equal to the present value of the repair costs for the…
Q: Maintenance expenses for a bridge on the Ohio River are estimated to be $20,000 per year for the…
A: Equivalent annual cost (EAC) is the uniform cost of the project divided among total life of project…
Q: Two costs for construction of a small, remote mine are for labor and transportation. Labor costs are…
A: Computation:
Q: The cost for manufacturing a component used in intelligent interface converters was $23,000 the…
A: The question gives the following information:
Q: A steel mill estimates that one of its furnace will require maintenance of P20, 000.00 at the end of…
A: Annual interest rate = 6% Semi annual interest rate = 6%/2 = 3% 1. Calculation of present value…
Q: The cost to manufacture a component used in intelligent interface was $22,000 the first year. The…
A: Present value method of calculation is used to know the value of future money at present date. The…
Q: A road requires no upkeep until the end of 3 years when P100,000 will be needed for repairs. After…
A: Given that: i=14% Present value of all cost = 100000×(P/F,14%,3) + 80000×(P/A,14%,6)*(P/F,14%,3) +…
Q: In order to build a new warehouse facility, the regional distributor for Valco Multi-position Valves…
A: Borrowed amount = $1,600,000 Interest rate = 10% Time period = 2 years Future value=Borrowed…
Q: A four-year-old truck has a present net realizable value of $6,000 and is now expected to have a…
A: The value of a four-year-old truck is $6,000 and the expected value after three years is $1,800.The…
Q: The generator set requires no maintenance until the end of 2 years when P60,000 will be needed for…
A: An annuity is a stream of equivalent periodic cash flows over a specific time duration. It can be…
Trucks used by a logistics company for their offered services have an annual cost of $20,000 for the next 8 years. Two separate payments of $100,000 are also made in year 12 and 18. If the expected life of the truck is 30 years, what is the equivalent uniform annual expense over 30 years if the annual interest is 6%?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A machine costs $20,000 and has a 5-year useful life. At the end of the 5 years, it can be sold for $4,000. If annual interest is 8%, compounded semiannually, what is the equivalent uniform annual cost of the machine?Contracting company plans to update its equipment so that its trucks are replaced after five years from now. The estimated cost required for so is ($ 200,000). The company plans to pay only (20%) from the amount directly, and borrow the rest. The company decided to deposits an annually uniform series during those five years to provide the amount to be paid directly. What is the amount of payment that annually paid? If the interest rate is (7%).An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs. After this P90,000 will be needed for repairs at the end of each year for the next 5 years, then P120,000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period?
- A general purpose truck is purchased for business. Its cost Basis is 70,000. It will last 10 years and be sold for 10,000. i = 6% for the loan with monthly payments. What is the depreciation allowance for the third year using MACRS? O 19466 O 894 21774 O 26971 O 13440The first-year maintenance cost for a new car is estimated to be $100, and it increases at a uniform rate of 10% per year. Using an 8% interest rate,calculate the present worth (PW) of the cost of the first 5 years of maintenance.The generator set requires no maintenance until the end of 2 years when P60,000 will be needed for repairs. After this, P90,000 will be needed for repairs at the end of each year for 5 years, then P120,000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12 years period.
- An asphalt road requires no repairs until the end of 2 years. At the end of 3rd year, P90,000 will be needed for repairs for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If moneyis worth 14% compounded annually, what is the present value of the repair cost and its equivalent uniform annual cost for the 12-year period?The generator set requires no maintenance until the end of 2 years when P60,000 will be needed for repairs. After this, 90,000 will be needed for repairs at the end of each year for 5 years, then P120,000 at the end of each year for the next 5 years. Il money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12 year period?An asphalt road requires no upkeep until the end of 2 years when P60,000 will beneeded for repairs. After this P90,000 will be needed for repairs at the end of each yearfor the next 3 years, then P120,000 at the end of each year for the next 4 years. Ifmoney is worth 14% compounded annually, what was the equivalent uniform annualcost for the 9-year period?
- The expected annual maintenance expense for a new piece of equipment is $10,000. This is Alternative A. Alternatively, it is possible to perform the maintenance every fifth year at a cost of $50,000 (Alternative B). In either case, maintenance will be performed in the fifth year so that the equipment can be sold for $100,000 at that time. If the MARR is 15% per year (before income taxes), which alternative should be recommended in each of these situations? Before income taxes are considered. After income taxes are considered when t = 40%. Is there a different selection before and after income taxes are considered?The expected annual maintenance expense for a new piece of equipment is $10,000. This is Alternative A. Alternatively, it is possible to perform the maintenance every fifth year at a cost of $50,000 (Alternative B). In either case, maintenance will be performed in the fifth year so that the equipment can be sold for $100,000 at that time. If the MARR is 15% per year (before income taxes), which alternative should be recommended in each of these situations? Solve, a. Before income taxes are considered. b. After income taxes are considered when t = 40%. c. Is there a different selection before and after income taxes are considered?A machine has a useful life of 10 years. It requires a semi-annual operating cost of $3,000 for the first 4 years, increasing by 6% per semi-annual period thereafter. Use an interest rate of 19.53% per year/compounded quarterly. Determine the present sum of money that should be put aside to pay for the required operating cost over the 10-year period.