Construction Management
5th Edition
ISBN: 9781119256809
Author: Daniel W. Halpin, Bolivar A. Senior, Gunnar Lucko
Publisher: WILEY
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Mrs. X has just purchased a new car for 1M. She makes a down payment of 30% of the negotiated price and then makes payments of P15,000 per month thereafter for 60 months. Furthermore, she believes the car can be sold for P750,000 at the end of 3 years. Draw a cash flow diagram of this situation from Mrs. X’s point of view.
Attach a complete solution. Draw the cash flow diagram.Calculate the capitalized cost of a project that has an initial cost of P8,000,000 and an additional cost of P250,000 at the end of every 8 years. The annual operating costs will be P150,000 at the end of every year for the first 5 years and P200,000 thereafter. In addition there is expected to be recurring major rework cost of P500,000 every 13 years. Assume i=12%
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Chapter 12 Solutions
Construction Management
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- a) Draw the cash flow diagram for a project if the contractor expenditures in the beginning of the project is (25000$) and he receives payments (8000$, 10000$, and 13000$) after (2, 4, and 8) months respectively. b) For the question (Q2-a), what is the compound amount of money if the contractor save the initial cost (25000$) in a bank offering interest rate (9%) yearinyarrow_forward•1 You are planning to build a new home with approximately 2,000–2,500 gross square feet of living space on one floor. In addition, you are planning an attached two-car garage (with storage space) of approximately 450 gross square feet. Develop a cost and revenue structure for designing and constructing, operating (occupying) for 10 years, and then selling the home at the end of the 10th year. 176arrow_forwardENGINEERING ECONOMICS Miss Pagtal owes Mr. Rey 400,000 due today. Miss Pagtal offers to pay the principal plus accumulated simple interest at the rate of 10% at the end of 3 years. Mr. Rey insisted on charging 10% compounded quarterly. How much more will Mr. Rey earn at the end of 3 years as compared to the offer of Miss Pagtal?arrow_forward
- A contractor wishes to participate in the bidding for a government project and submitted documents for eligibility screening or pre-qualification. The ABC for the project to be bid is P328,644,200.20 with a duration of 20 months. The document submitted by the contractor showed that the largest single project similar to the project to be bid undertaken by the contractor in the last 3-years has a value of P163,866,528.45. Will the contractor be qualified to participate in the bidding for the project? Why?arrow_forwardLukas Center acquired a new Laser Machine worth ₱580,000.00. The center plans to pay 35% advance payment and the balance by quarterly payments for 7 years. Money is worth 9% converted quarterly. a. How much is the balance that must be amortized every three months? b. How many quarterly payments must be made to settle the obligation? c. Cost of the quarterly payments?arrow_forwardEngr. Graziella loans an amount of P150,000 at 8% effective annual interest. She agreed to pay the loan over 15 years with a uniform monthly payment due on the first day of each month. What will be the monthly payment of Engr. Graziella?arrow_forward
- The following cash flows result from a potential construction contract for Erstwhile Engineering. 1. Receipts of $500,000 at the start of the contract and $800,000 at the end of the fourth year. 2. Expenditures at the end of the first year of$400,000and at the end of the second year of $900,000. 3. A net cash flow of zero at the end of the third year. Using an appropriate rate of return method, for a MARR of 25 percent, should Erstwhile Engineering accept this project? Answer the following question: Erstwhile Engineering should/should not accept the project because the rate of return is (enter your response here) percent, which is less/greater than the MARR.arrow_forwardQuestion 1. Answer the following: A. When the price =70000-200(Demand), the maximum total revenue B. The installation cost of a machine is $5000 with estimated life of 8 years and selvage value of $1500 at the end of the 8th year. What will be the annual depreciation cost in the fourth year (using straight line method)? C. Figure (1) shows a cash flow diagram depicting a uniform series of five beginning-of- period cash flows of $1000 each. The present worth of the $1000 the beginning of the first period equals to......... A=$1000 1 2 3 4 5 i=%10 compounded annually Figure 1 D. The Present worth (PW) of five annual payment of $6000 paid at the end of the first five years with interest rate of % 24 compounded monthly is........... Question 2 For an engineering project, the following payments have been estimated to be paid at their certain time as follow: The initial construction cost of a project is $300000 which should be paid at the beginning of the construction period (time =0). Extra…arrow_forwardENGINEERING ECONOMICS Dr. Max borrowed P3, 500, 000 at 8% for 10 years. The loan stipulated that the following payments have to be made: P150, 000 at the end of the 1styear to the 3rd year; P200, 000 at the end of the 4th to the 5th year; P300, 000 at the end of the 6th to the 7th year; P400, 000 at the end of the 8th to the 9th year; and a final payment at the end of the 10th year. What should be the amount (Q) of the final payment?arrow_forward
- Activity 5: Check for Understandıng A young woman 22 years old has just graduated from college. She accepts a good job and desire to establish her own retirement fund. At the beginning of each year thereafter she plans to deposit P 2,000 in a fund at 15% annual interest. How old will she when the fund has an accumulated value of P 1,000,000arrow_forwardDraw the cashflow and box the final answer A young woman, 22 years old, has just graduated fromcollege. She accepts a good job and desires to establish herown retirement fund. At the end of each year thereafter sheplans to deposit P2,000 in a fund at 15% annual interest.How old will she be when the fund has an accumulated valueof P1,000,000?arrow_forwardBy the conditions of the will, the sum of 35,000 is left to a 12 year old girl to be held in a trust fund invested at 8% compounded quarterly. How much will she receive when she turns 18? Kindly answer the engineering economy problem above. thank youarrow_forward
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