The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2.1 million. Resurfacing and other maintenanceare expected to cost $400,000 every 6 years. What is the capitalized cost of the road at an interest rate of 13% per year?The capitalized cost is determined to be $

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Three different plans were presented to the Ahbhalet Corporation for operating an identity-theft scanning system. Plan A involves renewable 1-year contracts with payments of $1.1 million at the beginning of each year. Plan B is a 2-year contract that requires four payments of $360,000 each, with the first one made now and the other three at 6-month intervals. Plan C is a 3-year contract that entails payment of $3.5 million now and the second payment of $0.5 million 2 years from now. Assuming that the company could renew any of the plans under the same payment conditions, determine which plan is best on the basis of a PW analysis at a MARR of 6% per year compounded semiannually. The present worth of plan A is $ The best plan on the basis of the present worth analysis is plan B the present worth of plan B is $ and the present worth of plan C is $
A building project has a present cost of 123,000 JD, an annual cost of 18,000 JD, and a periodic cost of 41,000 JD every 5 years. Use an interest rate of 12% per year to find the capitalized cost of the project.
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The cost of the extending a certain road at Yellowstone National Park is $1.7 million. Resurfacing and other maintenance are expected to cost $350,000 every 3 years with an interest rate of 6% per year. a) What is the Annual Worth based capitalized cost of the road? b) How will the answer (a) change if its Salvage is expected to be $3 million at the end of its useful Life?
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The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2.1 million. Resurfacing and other maintenance are expected to cost $400,000 every 6 years. What is the capitalized cost of the road at an interest rate of 13% per year? The capitalized cost is determined to be $