Every 10 years, the dome of the state capitol building has to be cleaned, sandblasted, and retouched. It costs $750,000 to complete the work. Using a 5% MARR, what is the capitalized cost for refurbishing the capitol dome?
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Every 10 years, the dome of the state capitol building has to be cleaned, sandblasted, and retouched. It costs $750,000 to complete the work. Using a 5% MARR, what is the capitalized cost for refurbishing the capitol dome?
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- The cost of maintaining a certain permanent monument in Washington, DC occurs as periodic outlays of $2000 every year, $5000 every 3 years. Calculate the capitalized cost of the maintenance using an interest rate of 8% per year.A highway bridge is being considered for replacement. The new bridge would cost $X and would last for 20 years. Annual maintenance costs for the new bridge are estimated to be $24,000. People will be charged a toll of $0.25 per car to use the new bridge. Annual car traffic is estimated at 400,000 cars. The cost of collecting the toll consists of annual salaries for five collectors at $10,000 per collector. The existing bridge can be refurbished for $1,600,000 and would need to be replaced in 20 years. There would be additional refurbishing costs of $70,000 every five years and regular annual maintenance costs of $20,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 12% per year, what is the maximum acceptable cost (X) of the new bridge? (11.2)(a) $1,943,594 (b) $2,018,641 (c) $1,652,425 (d) $1,570,122 (e) $2,156,209The Transportation Service Directorate of a Municipality wants to purchase a newsoftware system to charge and track toll fees. The director wants to know the total capitalized cost ofthe software system. The system has an initial installment cost of 150 000 pbr and an additional cost of50 000 pbr after 10 years. Annual software maintenance cost is 8000 pbr and starts at year five. Inaddition, there is expected to be a recurring major upgrade cost of 15000 pbr every 13 years. Assumethat i=5% per year. If the new system will be used for the indefinite future, draw the cash flowdiagram and find the capitalized cost of the investment.
- A highway bridge is being considered for replacement. The new bridge would cost $X and would last for 24 years. Annual maintenance costs for the new bridge are estimated to be $24,000. People will be charged a toll of $0.29 per car to use the new bridge. Annual car traffic is estimated at 390,000 cars. The cost of collecting the toll consists of annual salaries for six collectors at $10,000 per collector. The existing bridge can be refurbished for $1,300,000 and would need to be replaced in 24 years. There would be additional refurbishing costs of $75,000 every five years and regular annual maintenance costs of $22,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 12% per year, what is the maximum acceptable cost (X) of the new bridge?A city engineer must find the capitalizd cost of perpetual service from a water plant. A storage tank that costs $40,000 is needed now. In ten years, a second $60,000 tank will be needed. At that time, a $7000 pumping system with life of eight years will be installed. Pump maintenance and operation costs are $800 the first year, $900 the second, and increases by $100 each year for the eight-year life. There is no salvage value. Use 10% to find the capitalized cost.A highway bridge is being considered for replacement. The new bridge would cost $X and would last for 24 years. Annual maintenance costs for the new bridge are estimated to be $25,000. People will be charged a toll of $0.29 per car to use the new bridge. Annual car traffic is estimated at 390,000 cars. The cost of collecting the toll consists of annual salaries for six collectors at $12,000 per collector. The existing bridge can be refurbished for $1,400,000 and would need to be replaced in 24 years. There would be additional refurbishing costs of $75,000 every five years and regular annual maintenance costs of $21,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 15% per year, what is the maximum acceptable cost (X) of the new bridge? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. Choose the correct answer below. A. The maximum acceptable cost of the new bridge is $976,079. O B.…
- Robertson Construction Company is considering two projects upon which to bid. The first is for 5-year renovation of an aging government building. For Robertson to do this job they will need to invest $1.2 million into various equipment (with the total salvage value being approximately $50,000, with yearly operations cost beginning at $5,000 in year 1, and increasing by $500 each year of the project). The second is the building of a library which is expected to take 7 years and will require a $1.6 million dollar investment (salvage being $80,000 at the end of 7 years with yearly operations cost at $4,000). Assume that almost identical renovation projects come up every 5 and 7 years respectively. Robertson has a MARR of 10% a) Robertson has been asked to quote an annual price that each project will cost. What is the minimum annual price Robertson should ask for if each project will be worth their while? Include all your calculations for this.b) If these projects were mutually exclusive…A highway bridge is being considered for replacement. The new bridge would cost $X and would last for 24 years. Annual maintenance costs for the new bridge are estimated to be $26,000. People will be charged a toll of $0.24 per car to use the new bridge. Annual car traffic is estimated at 380,000 cars. The cost of collecting the toll consists of annual salaries for six collectors at $12,000 per collector. The existing bridge can be refurbished for $1,600,000 and would need to be replaced in 24 years. There would be additional refurbishing costs of $65,000 every five years and regular annual maintenance costs of $23,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 10% per year, what is the maximum acceptable cost (X) of the new bridge? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Choose the correct answer below. A. The maximum acceptable cost of the new bridge is $1,007,125. B.…A concrete pavement on a street would cost P10,000 and would last for 5 years with negligible repairs. At the end of each 5 years. P1000 would be spent to remove the old surface before 10,000 is sent again to lay a new surface. Find the capitalized cost.
- Peachtree Construction Company, a highway contractor, is considering the purchase of a new trench excavator that costs $300,000 and can dig a 3-foot-wide trench at the rate of 16 feet per hour. The contractor gets paid according to the usage of the equipment. $100 per hour. The expected average annual usage is 500 hours, and maintenance and operating costs will be $10 per hour. The contractor will depreciate the equipment by using a five-year MACRS, units-of-production method. At the end of five years, the excavator will be sold for $100,000.(a) Assuming that the contractor's marginal tax rate is 35% per year, determine the annual after-tax cash flow.(b) Is this a good investment if the contractor requires 15% return on investment?A proposed bridge on the interstate highway is being considered at the cost of 4 million dollars. It is expected that the bridge will have a life of 30 years. Construction costs will be paid by government agencies. Operation and maintenance costs are estimated to be $250,000 per year. Benefits to the public are estimated to be $900,000 per year. The building of the bridge will result in an estimated cost of $250,000 per year to the general public. The project requires a return of 5%. Determine the benefit/cost (B/C) ratio.Alfred Home Construction is considering the purchase of five dumpsters and the transport truck to store and transfer construction debris from building sites. The entire rig is estimated to have an initial cost of $125,000, a life of 8 years, a $5000 salvage value, an operating cost of $40 per day, and an annual maintenance cost of $2000. Alternatively, Alfred can obtain the same services from the city as needed at each construction site for an initial delivery cost of $125 per dumpster per site and a daily charge of $20 per day per dumpster. An estimated 45 construction sites will need debris storage throughout the average year. If the minimum attractive rate of return is 12% per year, how many days per year must the equipment be required to justify its purchase?