8. Calculate the capitalized cost of a project that has an initial cost of P 3,000,000 and an additional cost of P 1,000,000 at the end of every ten years. The annual operating cost will be P 100,000 at the end of every year for the first four years and P 160,000 thereafter. In addition, there is expected to be a recurring major rework cost of P 300,000 every 13 years. Assume i = 15%. A. P 2,481,539 B. P 1,935,241 C. P 4,281,936 D. P 3,694,182

8. Calculate the capitalized cost of a project that has an initial cost of P 3,000,000 and an additional cost of P 1,000,000 at the end of every ten years. The annual operating cost will be P 100,000 at the end of every year for the first four years and P 160,000 thereafter. In addition, there is expected to be a recurring major rework cost of P 300,000 every 13 years. Assume i = 15%. A. P 2,481,539 B. P 1,935,241 C. P 4,281,936 D. P 3,694,182

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

See similar textbooks

Similar questions

Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?
Calculate the capitalized cost of a project that has an initial cost of 3M and an additional investment cost of 1M at the end of every ten years. The annual operating cost will be 100T at the end of every year for the first four years and 160T thereafter. In addition, there is expected to be a recurring major rework cost of 300T every 13 years. Assume i = 15%.
Calculate the capitalized cost of a project that has an initial cost of P3,000,000 and an additional cost of P100,000 at the end of every 10 years. The annual operating cost will be P100,000 at the end of every year for the first 4 years and P160,000 thereafter. In addition, there is expected to be recurring major rework cost of P300,000 every 13 years. Assume i=15%.
Calculate the capitalized cost of a project that has an initial cost of P3,000,000 and an additional cost of P1,000,000 at the end of every ten years. The annual operating cost will be P100,000 at the end of every year for the first four years and P160,000 thereafter. In addition, there is expected to be recurring major rework cost of P300,000 every 13 years. Assume i=15%. Show complete manual computation with cash flow diagram.
Calculate the annual cost of the project that has an initial cost of P2.5 Million and an additionalinvestment cost of 1 Million at the end of every ten years. The annual operating cost will beP100,000 at the end of every year for the first four years and P150,000 thereafter. In addition,there is expected to be recurring major rework cost of P200,000 every 13 years. Assume i =10%
o Calculate the capitalized cost of a project that has an initial cost of P3,000,000 and an additional investment cost of P1,000,000 at the end of every 10 years. The annual operating cost will be P100,000 at the end of every year for the first 4 years and P160,000 thereafter. In addition, there is expected to be a recurring major rework cost of P300,000 every 13 years. Assume i = 15%.
Calculate the capitalized cost of a project with a P3,000,000 beginning cost and an extra P850,000 investment cost at the end of every ten years. For the first five years, the yearly running cost will be P100,000 at the end of each year, rising to P160,000 after that. In addition, a recurring significant rework cost of P300,000 is estimated every 13 years. Assume that i=15%. P4,281,935 P4,331,654 P4,202,388 P4,252,105
Calculate the annual cost of a project that has an initial cost of P 3,000,000 and an additional cost of P 1,000,000 at the end of every ten years. The annual operating cost will be P 100,000 at the end of every year for the first four years and P 160,000 thereafter. In addition, there is expected to be a recurring major rework cost of P 300,000 every 13 years. Assume i = 15%. P 4,281,936 P 3,694,182 P 592,480 P 642,290
Calculate the capitalized cost of a project that has an initial cost of P3M. The annual operating cost will be P100,000 at the end of every year for the first five years and P160,000 thereafter. Assume i=15%.
Calculate the capitalized cost of a project that has an initial cost of Php 3,000,000 and an additional investment cost of Php 1,000,000 at the end of every 10 years. The annual operating cost will be Php 100,000 at the end of every year for the first four years and Php 160,000 thereafter. In addition there is expected to be recurring major rework cost of P300,000 every 13 years. Assume i= 15%.
calculate the capitalized cost of a project that has an initial cost of 8 000 000 and an additional cost of 250,000 at the end of every 8 years the annual operating costs will be 150,000 at the end of every year for the first 5 years and 200,000 thereafter in addition there is expected to be recurring major rework cause of 500,000 every 13 years. Assume i=12%. draw the complete diagram.
A project has a first cost of $75,000, operating and maintenance costs of $10,000 during each year of its 8-year life, and a $15,000 salvage value. If the interest rate is 12%, what is its equivalent uniform annual cost (EUAC)?