water pump to be used by the city’s maintenance department costs $10 000 new. A running-in period, costing $1000 immediately, is required for a new pump. Operating and maintenance costs average $500 the first year, increasing by $300 per year thereafter. The salvage value of the pump at any time can be estimated by the declining balance rate of 20 percent. Interest is at 10 percent. Using a spreadsheet, calculate the EAC for replacing the pump after one year, two years, etc. How often should the pump be replaced?

A new school building was recently built in the area. The entire cost of the project was $16,000,000. The city has put the project on a 20-year loan with an APR of 2.6%. There are 15,000 families that will be responsible for making monthly payments towards the loan. Determine the total amount that each family should be required to pay each year to cover the cost of the new school building. Round your answer to the nearest cent, if necessary.

A granary purchases a conveyor used in the manufacture of grain for transporting, filling, or emptying. It is purchased and installed for $72,000 with a market value for salvage purposes that decreases at a rate of 20% per year with a minimum of value $2,350. Operation and maintenance is expected to cost $14,400 in the first year, increasing $1,200 per year thereafter. The granary uses a MARR of 15%. What is the optimum replacement interval for the conveyor? ___________ years.

The Culinary Institute is considering a classroom remodeling project. The cost of the remodel would be $350,000 and will be depreciated over six years using the straight- line method. The model will acoomoodate five extra student per year. Additional information related to the project follows:Cost of the remodel project: $350,000 Useful life of project in years: 6 Annual number of extra students: 5 Annual tuition per student: $22,000 Before- tax incremental cost of a student: $2,000 Company's income tax rate: 20% Required rate of return: 12% Assuming a six- year time horizon, what is the internal rate of return of the remodeling project? Calculate using both present value factors and separately using Excel's IRR function. Please include formulas to show how you arrive at each solution! A) Annual cash flow: Revenue                            ? Less costs:Other than depreciation        ? Depreciation                       ? Income before taxes           ? Income tax expense            ?…