A water Reservoir will have a first cost of Php 10,000,000,000, an annual maintenance cost of 35,000,000, and minor reconstruction costs of 3,000,000 every five years. What the capitalized cost of the reservoir at an interest rate of 10% per year?

Q: A project that provides annual cash flows of $2,500 for 10 years costs $10,000 today. At a required…

A: NPV. Net present value (NPV)   is calculated by deducting initial investment from present value of…

Q: A dam will have a first cost of P250,000,000, an annual maintenance cost of P1,250,000 and minor…

A: A capitalized cost seems to be a cost incurred as a consequence of the acquisition of a fixed asset…

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A: The Internal Rate of Return (IRR) of the project, we need to find the discount rate at which the net…

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A: Total capitalised cost include the initial cost of investment and the present value of annual cost…

Q: Consider a beach resort project having an initial investment of $50M for 10 years. how much will be…

A: Minimum Acceptable rate of Return(MARR): It is the minimum rate of return  to accept before starting…

Q: Calculate the Internal rate of Return of the project

A: Meaning of Internal rate  of return Means where present value of cash inflows = present value of…

Q: A project will produce an operating cash flow of $14,000 a year for 5 years. The initial fixed asset…

A: Net present value (NPV) is an important capital budgeting metric. It is the sum of present values of…

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A: Annual Capitalized Project Cost is actually the total present value of  (i) Annual Operating Costs…

Q: project that 3,000,000 an cost of P1,000

A:

Q: An investr

A: The given question is off the one time initial payment for aquiring capital asset. We know the…

Q: A bridge that was constructed at a cost of ₱75,000,000 is expected to last 30 years, at the end of…

A: Capitalized cost refers to the present worth of cash flows that go on for an infinite period of…

Q: flows of $21,200 for nine years costs $120,000 today. What is the NPV for the project if the…

A: Net present value or NPV is excess of present value of cash inflows over present value of cash…

Q: A project capitalized for ₱47,000 invested in depreciable assets will earn a uniform, annual income…

A: The rate of return may be used for real estate, bonds, equities, and fine art. The rate of return…

Q: A flood control project with a life of 14 years will require an investment of $57.000 and annual…

A: Benefit to cost ratio: It is ratio of present value of the benefits to present value of costs.

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A: Discounted Payback period refers to one of the modern techniques which measure the time that the…

Q: An investment of $875,000 in equipment will produce annual profits of $175,000 for eight years. The…

A: Investment amount = $ 875000 Annual profit = $ 175000 Residual value = $ 40000 Period = 8 Years

Q: $25,500 today will generate cash flows of $8,800 per year for seven years. What is the project's…

A: Payback period is the no. of years required to recover the initial amount invested.

Q: onsider the following project. Costs: $100,000, at time t = 0. $45,000, at time t = 4. Income: Three…

A: The question is based on the concept of calculating the future value of cash flows in a project at…

Q: Calculate the capitalized cost of a project that has an initial cost of $300,000 And additional…

A: Initial cost (I) = $300000 Addition cost in year 10 (I1) = $100000 Annual cost (A) = $10000 for 4…

Q: An investment proposal calls for $223,130 payment now and a second $259,455 7 years from now. The…

A: The question is based on the concept of Financial Accounting.

Q: culate the capitalized cost of a project th: nitial cost of P3,000,000 and an additiona P1,000,000…

A: A capitalized cost refers to the cost which is summed up to the cost basis of a fixed asset of the…

Q: A project has an initial cost of $50,000, expected net cash inflows of $15,000 per year for 7 years,…

A: MIRR stands for modified internal rate of return. It is an improvement over the IRR metric i.e.…

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A: Calculate the capitalized equivalent of the perpetual annual maintenance costs as follows:

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A: Initial cost =3000000Additional cost=1000000N=10 yearsOperating cost:PA=P100000 for 4…

Q: Year 1, $10,000; Year 2, $50,000; and Year 3, $100,000. At an annual interest rate of 3 percent,…

A: Net present value is one of the concept used in capital budgeting. Under this, present value of cash…

Q: an investment project provides cash inflows of $850 per year for 5 years. What is the project…

A: Initial cost = $5600 Annual cash inflow = $850 Period = 5 Years

Q: A fixed capital investment of ₱10,000,000 is required for a proposed manufacturing plant and an…

A: Given Information: Fixed capital investment = ₱10,000,000 Estimated working capital = ₱2,000,000…

Q: What is the capitalized cost of the project with interest rate 10% per year compounded monthly? The…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: A contractor is saving money for a lucrative project. The initial cost is $175,000, annual outlays…

A: To find the money to be saved, we will have to find the present value of all the expenses using 8%…

Q: 0 today will generate cash flows of $8,000 per year for seven years. What is the project's payback…

A: Payback period is the no. of years required to recover the initial amount invested.

Q: Q)A dam will have a first cost of Php 364,000,000, an annual maintenance of Php 10,000,000 and minor…

A: Given:Dam first cost=Php364000000Annual maintainance=Php10000000Minor construction costs=Php3620000…

Q: A project will produce an operating cash flow of $78,900 a year for five years. The initial cash…

A: Having enough working capital is necessary to pay off short-term debt. By guaranteeing prompt…

Q: A project generates annual cash flows of $3,000,000 each year for three years and costs $6,000,000.…

A: Modified IRR of the Project :A financial indicator used in capital budgeting to evaluate the…

Q: Project A costs $67775, its expected net cash inflows are $10000 per year for 10 years, and its WACC…

A:

Q: The ABC Transportation estimates the cost of upgrading a highway to be $85 million now. Resurfacing…

A: 550000 each 3 years  interest rate =8% Future value FACTOR =(1.08)3- 1/0.08 Future value FACTOR…

Q: An investment project provides cash inflows of $ 2,403 per year for 10 years. What is the project…

A: Initial cost = $9,090 Annual cash inflow = $2,403 Payback period = ?   Payback period is the period…

Q: Calculate the capitalized cost of a project with a P3,000,000 beginning cost and an extra P850,000…

A: Capitalized cost would be present value of all cost that are going to occur in future course of time…

Q: What is the NPV of a project that costs $250,000 and provides cash inflows of $50,000 annually for…

A: Net Present Value : Net Present Value is the net of present value of future cash inflow and present…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.