Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Alternative The expected life is 30 years, Construction cost 129 M $ Land development cost 31 M $ Salvage value after 30 years 34
1. Alternative
The expected life is 30 years,
Construction cost 129 M $
Land development cost 31 M $
Salvage value after 30 years 34 M $
maintenance costs 7 M $ at the end of the 7th year, 11 M $ at the end of the 13th year, 5 M $ every year since the end of the 17th year.
fuel expenses 5 M $ per year
Annual operating costs 12 M $
annual income 47 M $
2. Alternative
The expected life is 40 years
Construction cost 160 M $
Land development cost 36 M $
Salvage value after 30 years 62 M $
maintenance costs 3.4 M $ per year
fuel expenses 6 M $ per year
Annual operating costs 13 M $
annual income 53 M $
(BOTH ALTERNATIVES annual income and expenses will start from the end of the 2nd year is guaranteed.)
(Interest rate %10) (tax rate 35%) (straight depreciation) please write the values like (A/P %15, 10)x 135000000
a) Do the Present Value Analysis (Least Common Multiple)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started