Largo Freightlines plans to build a new garage in three (3) years to have more space for repairing its trucks. The garage will cost $400,000. What lump- sum amount should the company invest now to have the $400,000 available at the end of the three-year period? Assume that the company can invest money at eight percent.

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Fraser Company will need a new warehouse in seven years. The warehouse will cost $350,000 to build.   Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.   Required: What lump-sum amount should the company invest now to have the $350,000 available at the end of the seven-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.)   Present Value 1. Ten percent   2. Seven percent

Golden Country Homes are to install a street lighting that costs $120,000. Annualmaintenance costs are expected to be $65,000 for the first 20 years and $85,000 foreach year thereafter. The lighting will be needed for an indefinitely long period oftime. With an interest rate of 10% per year, what is the capitalized cost of thisproject?

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A newly constructed bridge costs $10,000,000. The same bridge is estimated to need renovation every 10 years at a cost of $1,000,000. Annual repairs and maintenance are estimated to be $100,000 per year.(a) If the interest rate is 5%, determine the capitalized-equivalent cost of the bridge.{b) Suppose that the bridge must be renovated every 15 years, not every10 years. What is the capitalized cost of the bridge if the interest rate is thesame as in (a)?(c) Repeat (a) and (b) with an interest rate of 10%. What can you say about the effect of interest on the results?

The required investment cost of a new, large shopping center is $52 million. The salvage value of the project is estimated to be $18 rmillon (the value of the land) The projects life is 18 years and the annual operating expenses ar estimated to be $13 million. The MARR for such projects is 22% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 22% per year To make the shopping center a worthwhile venture, the minimum annual revenue must be S milion per year (Round to three decimal places)

Foster Incorporated is trying to decide whether to lease or purchase a piece of equipment needed for the next 10 years. The equipment would cost $50,000 to purchase, and maintenance costs would be $5,000 per year. After 10 years, Foster estimates it could sell the equipment for $21,000. If Foster leases the equipment, it would pay $19,000 each year, which would include all maintenance costs. If Foster's cost of capital is 9%, Foster should: (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1) Note: Use the appropriate factors from the PV tables. Multiple Choice lease the equipment, as the net present value of the cost is about $45,000 less. buy the equipment, as the net present value of the cost is about $48,700 less. lease the equipment, as the net present value of the cost is about $48,700 less. buy the equipment, as the net present value of the cost is about $50,000 less.

The FernRod Motorcycle Company invested $150,000 at 4.5% compounded monthly to be used for the expansion of their manufacturing facilities. How much money will be available for the project in  5 1/2 years?  (Round your answer to the nearest dolla

Foster Incorporated is trying to decide whether to lease or purchase a piece of equipment needed for the next 10 years. The equipment would cost $53,000 to purchase, and maintenance costs would be $5,200 per year. After 10 years, Foster estimates it could sell the equipment for $25,000. If Foster leases the equipment, it would pay $15,000 each year, which would include all maintenance costs. If Foster's cost of capital is 12%, Foster should: (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1) Note: Use the appropriate factors from the PV tables. Multiple Choice buy the equipment, as the net present value of the cost is about $53,000 less. lease the equipment, as the net present value of the cost is about $10,400 less. buy the equipment, as the net present value of the cost is about $10,400 less. О lease the equipment, as the net present value of the cost is about $6,700 less.