Geo-Star Manufacturing Company is considering a new investment in a punch-press machine that will cost $85,000 and has an annual maintenance cost of $9,400. There is also an additional overhauling cost of $19,000 for the equipment once every four years. Assuming that this equipment will last infinitely under these conditions, what is the capitalized equivalent cost of this investment at an interest rate of 14%? Click the icon to view the interest factors for discrete compounding when / = 14% per year. The capitalized equivalent cost of this investment is $ thousand. (Round to the nearest whole number.)Consider the following investment project. Calculate the net future worth of this investment at 15% and determine the acceptability of the investment. n An -$77,000 20,200 21,200 30,900 30,900 33,000 Click the icon to view the interest factors for discrete compounding when / = 15% per year. The net future worth of this investment will be $ thousand. (Round to one decimal place.)Maintenance money for an athletic complex has been sought. Mr. Kendall, the Athletic Director, would like to solicit a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be $1.1 million each year for the first five years, $1.5 million each year for years 6 through 10, and $1.8 million each year after that. (The building has an indefinite service life.) If the money is placed in an account that will pay 7% interest compounded annually, how large should the gift be? Click the icon to view the interest factors for discrete compounding when i = 7% per year. The gift should be $ |million. (Round to two decimal places.)Covington Corporation purchased a vibratory finishing machine for $19,000 in year 0. The useful life of the machine is 10 years, at the end of which the machine is estimated to have a salvage value of zero. The machine generates net annual revenues of $6,000. The annual operating and maintenance expenses are estimated to be $1,000. If Covington's MARR is 11%, how many years will it take before this machine becomes profitable? Assume that the cash flows occur continuously throughout the year. It will take years before this machine becomes profitable. (Round to one decimal place.)To decrease the costs of operating a lock in a large river, a new system of operation is proposed. The system will cost $830,000 to design and build. It is estimated that it will have to be reworked every 10 years at a cost of $120,000. In addition, an expenditure of $80,000 will have to be made at the end of the fifth year for a new type of gear that will not be available until then. Annual operating costs are expected to be $70,000 for the first 15 years and $100,000 a year thereafter. Compute the capitalized cost of perpetual service at i = 7%. Click the icon to view the interest factors for discrete compounding when / = 7% per year. The capitalized cost of perpetual service is $ | million. (Round to three decimal places.)
