What is the equivalent annual cost in years 1 through 7 of a contract that has a

Question:

What is the equivalent annual cost in years 1 through 7 of a contract that has a first cost of $70,000 in year 0 and annual costs of $15,000 in years 3 through 7? Use an interest rate of 10% per year.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

See More Books

Question Posted: Dec 24, 2018 06:04 AM

See More Questions

The Columbus Electronics Company is considering replacing a 1,000-pound-capacity forklift truck that was purchased three years ago at a cost of $15,000. The diesel-operated forklift was originally...
Redo Problem 14.2 with the following additional information. The asset is classified as a five-year MACRS property and has a book value of $5,760 if disposed of now. The firm's marginal tax rate is...
A firm can lease a truck for 4 years at a cost of $30,000 annually. It can instead buy a truck at a cost of $80,000, with annual maintenance expenses of $10,000. The truck will be sold at the end of...
Refer to the bolt strength problem 17.47. Assume = 6,050 and 5 100. Use the following 24 individual bolt strength observations to answer the questions posed. (a) Prepare a histogram and/or normal...
Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co.: Alert Security Services Co. End-of-Period...
Cold Zone Mechancial Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Price .............$ 63,500 per unit Cost of goods sold...
how a researcher examined how religious congregation size affects attendance
Dual effects of transactions on balance sheet equation and journal entries Assume that during 2008, Bullseye Corporation, a U.S. retailer, engages in the following six transactions. Bullseye...
Why is there a strike occurring at GM., and what are the effects that electric cars are having on them?
The president of Modular Office of Brazil (MOB), the wholly owned Brazilian subsidiary of U.S.- based Modular Office Corporation receives a compensation package that consists of a combination of...
The Wagner Act, Taft-Hartley Act, and the Landrum-Griffin Acts provided the foundation for the rules and regulation of: A. Food processing B. Interstate food transport C. Labor relations D. Nutrition...
Improvised explosive devices (IEDs) are responsible for many deaths in times of strife and war. Unmanned ground vehicles (robots) can be used to disarm the IEDs and perform other tasks as well. If...
A supplier of instrument gauge clusters uses a kanban system to control material flow. The gauge cluster housings are transported five at a time. A fabrication center produces approximately 10 gauges...
(ii) State Wilkie's updating equation in respect of the force of inflation and explain carefully what each of the components of the equation represents. State also which type of time series process...
Compute the double integral D x y dA over the domain D indicated as 0 x 5, x y 2x + 3. (Use symbolic notation and fractions where needed.) f(x, y) A = D
4. (10 points) A researcher believes that length of time spent listening to classical music increases memory for previously learned material. She has 4 groups of 5 subjects listen to either 10 min.,...
We find a binary system consisting of a 1 solar mass star, still in its main sequence phase, and a white dwarf. Assume both stars formed at the same time and that they did not significantly influence...
The equity sections from Atticus Group's 2015 and 2016 year-end balance sheets follow. Stockholders Equity (December 31, 2015) Common stock $6 par value, 50,000 shares authorized, 35,000 shares...
Find each function value without using a calculator. tan 120
What is the mode?
A company has purchased special-purpose equipment for the manufacture of rubber products (asset class 30.11 in IRS Publication 946) and expects to use it predominately outside the United States. In...
A coal mine purchased 3 years ago for $7 million was estimated to contain 4,000,000 tons of coal. During the past 3 years the amount of coal removed was 21,000, 18,000, and 20,000 tons, respectively....
NA Forest Resources purchased forest acreage for $500,000 from which an estimated 200 million board feet of lumber is recoverable. The company will sell the lumber for $0.10 per board foot. No lumber...
September 1 . Purchased a new truck for $ 8 3 , 0 0 0 , paying cash. September 4 . Sold the truck purchased January 9 , Year 2 , for $ 5 3 , 6 0 0 . ( Record depreciation to date for Year 3 for the...
Find the NPV for the following project if the firm's WACC is 8%. Make sure to include the negative in your answer if you calculate a negative. it DOES matter for NPV answers
What is the value of a 10-year, $1,000 par value bond with a 12% annual coupon if its required return is 11%?

What is the equivalent annual cost in years 1 through 7 of a contract that has a

Question:

Step by Step Answer:

Find F in year 7 and then con...View the full answer

Engineering Economy

Students also viewed these Business questions