Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Please show all your steps. I Attached a formula sheet if need it. Please label the formulas used if any. Thankyou.
Transcribed Image Text:Capitalized cost for painting costs
А сотраny is planning to spend $ 2, 500, 000 in a nеw werehouse.
There will be no maintenace cost for the first 5 years. Then,
aппиal mainteпасe сost will be $30, 000 per yar from year 6 to the end of
life of the werehouse. The werehouse will also be painted every
(begining at year 10)at a cost of 75,000. Consider a MARR of 10% per year.
15
years
What is the capitalized cost of painting the werehouse?
(а) $43.745
(b) $113,475
(c) $35,538
(d) $65,490
![List of Equations:
M
i̟
1+
M
i=|1+
СК
-1
i-
-1
(1+i)* –1
N
i
-
(A/F, i, N) =
(F/A, i, N) =
(1+i)* – 1
(1+i)* – 1
i(1+i)*
i(1+i)*
(P/A, i, N) :
(A/P, i,N) =
_(1+i)" – 1
-
(1 +i)™ – iN – 1
(1+i)" – iN –1
-
-
-
(P/G,i, N):
(A/G,i, N) =
%3D
N
(1+i)
i[(1 +i)^ – 1]
1-(1+ g) (1+ i)*
N
(P/A,g, i, N)=
if itg
i -g
N
(P/A,g i, N)=
(1+i)
if i=g
А
PW — СЕ
CR(i) — (Р — S)(А/Р, і, N) + iS
Bn = A(P/A,i,N-n)
In = (Bn-1)*i= A(P/A,i,N-n+1)*i
PPn = A(P/F,i,N-n+1)
P-S
Ds/(n) =
Р-S
BVs/(n)=P – n
N
BV 45(n) = P(1–d)"
Da, (n) = dP(1– d)
n-1
for n>1
CA, = rd{1-4)a-
CCA1 = P(d/2)
ССА
(1-d)"-2
for n>2
G=t * (Udisposal – S)
G=t-(Udisposal – P) – tcG+(S – P)
-
d
i'= i- f)
(1+f)
i =i' +f+i'*f
n-1
U
n
2
MARRA = MARRR +f+ MARRR f
*](https://content.bartleby.com/qna-images/question/783ce383-43f3-4332-85c6-260e48a9a7aa/f6b2d2af-a244-48ea-8ad9-8a2f2ddb34a3/z7w8hrg_processed.jpeg)
Transcribed Image Text:List of Equations:
M
i̟
1+
M
i=|1+
СК
-1
i-
-1
(1+i)* –1
N
i
-
(A/F, i, N) =
(F/A, i, N) =
(1+i)* – 1
(1+i)* – 1
i(1+i)*
i(1+i)*
(P/A, i, N) :
(A/P, i,N) =
_(1+i)" – 1
-
(1 +i)™ – iN – 1
(1+i)" – iN –1
-
-
-
(P/G,i, N):
(A/G,i, N) =
%3D
N
(1+i)
i[(1 +i)^ – 1]
1-(1+ g) (1+ i)*
N
(P/A,g, i, N)=
if itg
i -g
N
(P/A,g i, N)=
(1+i)
if i=g
А
PW — СЕ
CR(i) — (Р — S)(А/Р, і, N) + iS
Bn = A(P/A,i,N-n)
In = (Bn-1)*i= A(P/A,i,N-n+1)*i
PPn = A(P/F,i,N-n+1)
P-S
Ds/(n) =
Р-S
BVs/(n)=P – n
N
BV 45(n) = P(1–d)"
Da, (n) = dP(1– d)
n-1
for n>1
CA, = rd{1-4)a-
CCA1 = P(d/2)
ССА
(1-d)"-2
for n>2
G=t * (Udisposal – S)
G=t-(Udisposal – P) – tcG+(S – P)
-
d
i'= i- f)
(1+f)
i =i' +f+i'*f
n-1
U
n
2
MARRA = MARRR +f+ MARRR f
*
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