Question
1) What is the future worth value of the facility and operation costs at the end of year 10? 2) If the company expect 500
1) What is the future worth value of the facility and operation costs at the end of year 10?
2) If the company expect 500 000 usd profit for each year after operations started, what will be the future worth of the investment at the end of year 10?
3) If the company expects 500 000 usd profit for each year starting from year 5 after operation started until the year 10, what will be the present worth of the investment? 4)lf the company invest the principal amount 100 000 000 usd as uniform series for 10 years.
4) What will be the equivalent annual payment for the company?
5) Assume that the purifying system requires maintenance after 2 years from the operation initiation. The first year of the maintenance will cost 50 000 usd and increases 10 000 usd each year until the years 10. What will be the present worth value?
6) Assume that the purifying system requires maintenance after 2 years from the operation initiation. The first year of the maintenance will cost 50 000 usd and increases with %2 each year. What will be cost of the system at the year 10?
Gotham city is facing with water pollution nowadays due to the rapid increase at the city population. Wayne Companies which is one of the biggest company of the city, made an important meeting with its engineers and economists to find a way how to solve water pollution of the city. The engineers of the company offered an important methodology to purify the water. However, this methodology requires a critical investment that needs. comprehensive financial analysis. In order to purify the water, a new facility which will be called as Wayne Purifying Technologies(WPT) will be built on the main dam of the city. The facility will cost nearly 100 000 000 usd, The facility is going to start its operations at the year 3.
It also has operation cost for each year which is nearly 100 000 usd. After the main schedules and expenses were determined as given above, the economists studied on different scenarios about this investment. Please help to Bruce Wayne who is the CEO of the Wayne Companies as an economist by answering the following questions.(Asume interest rate is %5 per year)
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