Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

100 E.5. The construction of south-end zone seating in a football stadium is scheduled to occur 12 months from now at a cost of

image

100 E.5. The construction of south-end zone seating in a football stadium is scheduled to occur 12 months from now at a cost of $10,000,000. In addition to the construction cost, heavy maintenance is expected to occur every 24 months thereafter for a long time to come (noo) and cost $100,000 for every occurrence. Assume i = 0.75 percent per month (first heavy maintenance at EOM 36, then EOM 60, 84, 108, etc.). (a) Draw a representative section of the cash flow diagram. PART ONE Basic Principles (b) Find the capitalized cost (present worth) of this project. (Ans. $9,607,800) (c) Assume income occurs monthly for 3 months out of each 12. Find the monthly income required to pay for all costs mentioned above if the first income occurs at EOM 15, 16, and 17 and every 12 months thereafter (e.g., EOM 27, 28, 29, then 39, 40, 41, etc.). (Ans. $309,520)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

a Representative cash flow diagram 12 months 10000000 36 months 100... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mechanics of Materials

Authors: James M. Gere, Barry J. Goodno

7th edition

495438073, 978-0495438076

More Books

Students also viewed these Accounting questions

Question

What are the advantages of sales staff talking to the customers?

Answered: 1 week ago

Question

In what ways does the lateral hypothalamus facilitate feeding?

Answered: 1 week ago