The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60.000 per year for the next 5 years, cost of overhaul at the end of the 5th and 8th year is P140,000. Find the equivalent uniform annual cost of maintenance if mone

Q: What is the present worth of Kate’s money if P8000.00 is paid after 3 years? The money is worth 8%…

A: Present worth, otherwise called present value, is a financial idea used to determine the value of a…

Q: None

A: The objective of the question is to calculate the present worth of the investment at two different…

Q: A person has 80,000 in a savings account that earns interest at 7% per year, compounded annually. If…

A: Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate 80,000=12000[1-(1.075)^-time…

Q: A company wants to reserve money now to pay for increased operating costs for the next 7 years. If…

A: Operating  cost = $6,115 from 2 years to next 7 years. r = 3.5% n=7 years

Q: A production company is planning to open up another manufacturing setup in order to cope up with…

A: As given Principle amount is 8000 And interest rate = 12% Time = 6years Compounded quarterly

Q: A company plans to modernize its facilities in 9 years. They estimate saving $9,230 per month if…

A:

Q: 2. What is the future equivalent of Php400000 invested at 3% simple interest per year for 514 years?

A: Introduction Principal amount = php 400000 Interest rate = 3% = 3/100 = 0.03 Time period = 514 =…

Q: An engineer was promised to have an initial salary of 42500 and will then be increased by P500 per…

A:

Q: (Kindly give the given, complete and detailed solution. Thank you) Ten years ago, you deposited…

A: Compound interest rate is the interest on loan based on both the initial principal and the…

Q: An individual deposits an annual amount into a savings account that pays 6% interest compounded…

A: Since the loan is payable in 6 years which means that the individual will have to make payment for…

Q: A company plans to modernize its facilities in 7 years. They estimate saving $6,710 per month if…

A: Estimated Saving at the starting of the month =$6710 per month Salvage value at present=$14632 Time…

Q: Josh and Ann are saving up for their daughter’s college education. Seventeen years from today, they…

A: Cash flow is the development of cash all through an organization. Cash got implies inflows, and cash…

Q: What is the present worth of a $700 payment that occurs at the end of year 1 and repeating yearly…

A: Present value is the sum of money that has been discounted from a certain future value or from a…

Q: or the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in…

A: Given: Annual equivalent worth=$500 Interest rate (i)=10% per year Gradient=G Number of years(n)=7

Q: the investor thought he should receive 8% interest, compounded semi-annually, how much would he be…

A: *Solution :-

Q: How much should be deposited now at 8% compounded annually to take care of the maintenance of a…

A: According to the question above,  Rate of Interest (r) = 8% = 0.08 Amount = P 100,000  Time(t) = 6…

Q: The present equivalent of energy savings is $. (Round to the nearest dollar.) Is the cost of the…

A: Present equivalent  also known as present value refers to the current value of a future sum of money…

Q: You are to pay a bill every month for 5 years. The accumulated amount of the payment you paid is 60k…

A: Answer in step 2

Q: Major overhaul expenses of $5000 each are anticipated for a large piece of equipment. The expenses…

A: Net present value is the present value of the cash flows at the required rate of return of the…

Q: Find the money creation if the initial deposit are 11000 and the LRR is 70%

A: Basically in the question, Initial deposit are as = 11000 LRR = 70% Money creation = ?

Q: For the cash flow diagram, determine (Use i = 8% per year); 1. The Present Equivalent (P). 2. The…

A: Initial value=400Cash inflow till year 4 increases by gradient 200 per year and then year 4 to 9…

Q: Assume that 100 Apples cost 100 Liras Today. You have Invested your 500 TL with 1,5% monthly rate of…

A: Future value = present value*(1 + rate of interest)^number of years

Q: . If you deposit $1000 per month into an investment account that pays interest at a rate of 6% per…

A: Compound interest defines the interest calculated on both the initial principal and the accumulated…

Q: If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from…

A: Given Data, · Cost of money (Interest rate) = 14% = 14/100 = 0.14 · Type of compounding = quarterly…

Q: A concept car that will get 100 miles per gallon and carry 4 persons would have a carbon-fiber and…

A: To solve this problem, we need to calculate the present worth of the gasoline savings over a 10-year…

Q: A guy deposited P4,000, P4,500 and P5,000 at the end of the 2nd year, 3rd year and 4th year,…

A: We have given that  rate of interest i=0.07 or 7% We have to find the value of A

Q: If P 10,000 is deposited each year for 9 years, how much annuity can a person get annually from the…

A: In this question, there are two cash flows, One cash flow is when P10,000 is deposited each year-end…

Q: Determine the annual equivalent amount over 4 years for the following cash flow (CF) pattern. The…

A: The given cash flows can be represented as a cash flow diagram:The nominal interest rate is 5%…

Q: Alexandr makes 15 equal annual deposits of $1,000 each in a bank account paying 5% interest. How…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: A man deposits P43,799 each year into his savings account that pays 2% nominal interest compounded…

A: Given that, Present value (PV) = 43,799 Rate of interest (r) = 2% or 0.02 Time period (t) = 5 years

Q: Peter has decided to make a deposit of $500 each quarter (starting next quarter) for 5 years. If the…

A: In the future value calculation there are several variables that will be considered such as present…

Q: A service car whose cash price was P540.000 was bought with a down payment of 162.000 and monthly…

A: Compound interest monthly refers that interest amount will be charge every month after adding the…

Q: show given required andd solution An asphalt road requires no upkeep until the end of 2 years when…

A: The annual cost of buying, working, and maintaining a resource over its entire life is known as the…

Q: A man buys a motor cycle. There will be no maintenance cost the first year as the motor cycle is…

A: The present value is calculated as the sum of the product of future cash flows and present value…

Q: hat is the value of K on the let hand cash-low diagram that is equivalent to the right hand cash fow…

A: here by calculating the present value of the both of the cashflow we will find the value of K so,…

Q: Marmara University Copy Center buys three copier machines that each have a useful life of seven…

A: The useful life of the copier machine is 7 years and the salvage value of each machine is $1000. The…

Cash Flow in Engineering Economics (Interest and Equivalence)

The cash flows of a firm are of two categories such as cash inflows and cash outflows. Cash inflow is the money or income entering a firm during a specific period whereas cash outflow is the money exiting a firm during a specific period in the form of the expenses incurred by the firm. In other words, we can say that cash flow is a series of expenses and credits that run over the project over the lifetime it existed whereas cash inflows are all the income and gains the company earns as a result of its operations.