Determine Annual worth values

Q: Maintenance cost for a small bridge expected to last for 60 years is estimated to be Php1,000 each…

A: The yearly cost of owning, operating, and sustaining an asset throughout its entire life is referred…

Q: ve purchased a machine worth P1,564,748.00. And it needs maintenance at the end of every 6 months…

A: Present value of the money can be found by the interest rate and period given by using the formula.

Q: The annual maintenance cost of a generator is P1000 after 1 year and it is estimated to increase 10%…

A: Discounting is a technique which is used to compute the present value (PV) of future amount by…

Q: Annual maintenance cost for a machine is ₱25,000 for 6 years. Interest rate is 6%. If the…

A: Capital Budgeting: Capital budgeting decisions are the most important decision in corporate…

Q: The DPWH expects the cost of maintenance for a particular piece of heavy equipment to be P 50,000 in…

A: Present worth (PW) is a sum of PV of all the cashflows. Discounting is a technique which is used to…

Q: What is the equivalent present worth of the costs

A: Present value (PV) of growing annuity refers to an annuity which shows the current value of all the…

Q: A $90,000 investment is made at t=0, and returns are realized over a 5-year period. A return of…

A: The present value of money refers to the concept that a dollar received in the future is worth less…

Q: P2000 is invested in a high interest account for one and half (1 1/2) years . the interest rate is…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: A piece of machinery may be acquired by making an immediate payment of $250,000 and payments of…

A: Net present value is a capital budgeting metric used to evaluate the value of the net cash flows in…

Q: An engineering project has an investment amount of $129548 with an annual net profit of $53077 for 4…

A: Investment = $ 129548 Annual net profit = $ 53077 Period = 4 Years Interest rate = 15% Inflation…

Q: An engineering project has an investment amount of $129909 with an annual net profit of $53373 for 6…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: Using the ERR method and a 17% MARR, determine the acceptability of a 10-year manufacturing project…

A: MARR = 17℅ REINVESTMENT RATE = 14℅ Year Time to Maturity Outflows Inflows 0 10 2,800,000   1…

Q: An engineering project has an investment amount of $129011 with an annual net profit of $52364 for 5…

A: Investment = $ 129011 Annual net profit = $ 52,364 Period = 5  Years Interest rate = 15% Inflation…

Q: The maintenance costs of a new boiler are estimated as follows: P 600 per year for the first 3…

A: As per question , we are provided : Future value of all maintenance = P20000 Compounding rate = 6%…

Q: The annual maintenance cost of a generator is P834 after 1 year and it is estimated to increase by…

A: Annual Maintenance Cost = 834 End of period cost structure Increase in annual maintenance costs =…

Q: Annual maintenance cost for the machine is P 1,500 this year and estimated to increase 8% each year…

A: Future value is the value of an asset at a specific date. It measures nominal future sum of money…

Q: A mine will have a net annual income of P400,000.00 annually for 15 years. Determine its value if…

A: The share price is the current market price of the share. It is the price of the share at any…

Q: Shinhwa Company bought a machine costing P150,000 if paid in cash. The machine may be purchased by…

A: The parodic payment can be defined as the payment made at regular intervals that can be annual,…

Q: An investment is be made with an initial capital of PHP 853512. It is expected that there will be an…

A: Payback period Payback period is a capital budgeting tool to decide on the best investment…

Q: Given a 10% interest rate, what is the equivalent uniform annual worth of a system, given the…

A: The equal annual net cash flow is known as the equivalent uniform annual worth. It is calculated by…

Q: he interest rate is 8% p.a. compounded annually. A project requires an investment of $1000…

A: Net present value is employed to assess a project's or investment's profitability. It is determined…

Q: . Project 2 has a computed net present value of $26,300 over a 4-year life. Project 1 could be sold…

A: Net present value is one of the most important methods of capital budgeting based on the time value…

Q: An equipment with an estimated lifespan of 10 years is to be bought for Php 1,500,000. It will…

A: Initial Investment Cost (Year 0) I = Php 1,500,000Annual Revenue A= Php 400,000Annual Operating and…

Q: project requires an initial investment of $300,000 and is expected to generate annual revenues of…

A: Net Present Value NPV refers to the capital budgeting technique used to evaluate the profitability…

Q: The maintenance on a machine is expected to be ₱8984 for the second year and an additional ₱1,750…

A: Annual cost for 6 years = 1,750 Total Cost for the second year = 10,734 (8,984 + 1,750) Interest…

Q: The maintenance cost in year 1 is $23000, increasing by 7% each year. What is the present worth of…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A house is expected to have a maintenance cost of $1000 the first year. It is believed that the…

A: The annual maintenance cost is an increasing annuity. Here we need to find the equivalent annual…

Q: Annual maintenance cost for a machine is P1500 this year and are estimated to increase 10% each…

A:

Q: Calculate the equivalent annual cost for years 1 through infinity of $1,000,000 now and $1,000,000…

A: Formula to calculate the PV is: PV = FV*(1+i)^-n EAC = PV*i

Q: A building is to be paid indefinitely at the rate of 6%. The building's price is P1M if paid in…

A: SOLUTION- Compounding is done by the lenders when they provide interest on amount which includes…

Q: An equipment is expected to cost 200,000$ to be used for 3 years, and to have an annual operating…

A: Annual worth of a project means the amount which is going to be generated by the project on an…

Q: The procurement of a solar system requires a down payment of $119,628 at t=0 and a payment of $8,493…

A: Present value of an investment refers to the sum total value of all expected future cash flows in…

Q: 4. Determine the equal, end of period , annual worth of a process which will involve an initial…

A: Initial Outlay = 95000 Cost at end of year 1 = 11000 Annual Increase in = 1500 Time Period = 14…

Q: An engineering project has an investment amount of $126379 with an annual net profit of $53949 for 6…

A: The PV of a project refers to the value of its cash flows after they have been discounted to the…

Q: What is the ARR of a project investment of 1 million pesos of machinery with a life of 10 years and…

A: Accounting Rate of Return (ARR) = Average Net Profit / Average Investment

Q: A project consists of an annual investment 47,000.00 for four years, with no residual values. The…

A: We use different capital budgeting tools to determine the financial feasibility and viability of…

Q: An annual maintenance cost of a generator is P1000 after two years and it is estimated to increase…

A: The question is based on the concept of Financial Accounting. As the cost is increasing by 10% per…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.