Part A: You have decided to invest in a project to build and run a production line for a friend. Your friend has specified that the production line needs to last forever, and will always be operational. The associated costs for the project are shown in the table below. How much should you charge your friend now for the production line in order to build and maintain the perpetual project? Interest rate is 6%. Costs Amount Year incurred Initial Cost $175,000 Year 0 Annual Operating & Maintenance Costs $10,000 Per year, forever Major Maintenance Costs $80,000 First in year 5, then every 5 years forever Question 4 Part A: What is the equation used to find the portion due to the Nonrecurring Costs (the costs that do not repeat)? Group of answer choices P = 175,000 + 80,000(F/P, 6%, 5) P = 175000 P = 175,000 + 80,000(P/F, 6%, 5) P = 175,000 + 80,000(F/P, 6%, 1) Part B: You have decided to invest in a project to build and run a production line for a friend. Your friend has specified that the production line needs to last forever, and will always be operational. The associated costs for the project are shown in the table below. How much should you charge your friend now for the production line in order to build and maintain the perpetual project? Interest rate is 6%. Part B: What is the equation used to find portion of the cost due to the Recurring Cost (major maintenance costs)? Group of answer choices P = [80,000(F/A, 6%, 5)]/0.06 P = [80,000(A/F, 6%, 5)]/0.06 P = 80,000(F/A, 6%, 4) Part C: You have decided to invest in a project to build and run a production line for a friend. Your friend has specified that the production line needs to last forever, and will always be operational. The associated costs for the project are shown in the table below. How much should you charge your friend now for the production line in order to build and maintain the perpetual project? Interest rate is 6%. Part C: What is the equation used to find the portion of the cost due to the Annual Cost (annual operating and maintenance costs)? Group of answer choices P = 10,000/0.06 + 80,000(P/A, 0.06, 5) P = 10,000(P/F, 0.06, 1) + 80,000(P/A, 0.06, 10) P = 10,000/0.06 Part D: You have decided to invest in a project to build and run a production line for a friend. Your friend has specified that the production line needs to last forever, and will always be operational. The associated costs for the project are shown in the table below. How much should you charge your friend now for the production line in order to build and maintain the perpetual project? Interest rate is 6%. Part D: What is the equation used to find the Capitalized Cost? Group of answer choices Nonrecurring Cost = Recurring Cost + Annual Cost Capitalized Cost = Nonrecurring Cost + Recurring Cost + Annual Cost Capitalized Cost + Annual Cost - Nonrecurring Cost + Recurring Cost Annual Cost = Nonrecurring Cost + Recurring Cost Part E: You have decided to invest in a project to build and run a production line for a friend. Your friend has specified that the production line needs to last forever, and will always be operational. The associated costs for the project are shown in the table below. How much should you charge your friend now for the production line in order to build and maintain the perpetual project? Interest rate is 6%. Part E: Provide the cost for the project. Enter your answer in the form 123456 Part F: You have decided to invest in a project to build and run a production line for a friend. Your friend has specified that the production line needs to last forever, and will always be operational. The associated costs for the project are shown in the table below. How much should you charge your friend now for the production line in order to build and maintain the perpetual project? Interest rate is 6%. Part F: Choose the most correct statement. Group of answer choices In order to build and maintain the perpetual project that will always be running with an interest rate of 6%, I should charge my friend (the amount from Part E) now. I should charge my friend (the amount from Part E). In order to build and maintain the perpetual project that will always be running with an interest rate of 6%, I should charge my friend (the amount from Part E). In order to build and maintain the perpetual project I should charge my friend (the amount from Part E) now