Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q2. A steel workshop of initial cost of X. The expected annual revenue is Y during the useful life which is 18 years, i=6%. [26marks]
Q2. A steel workshop of initial cost of X. The expected annual revenue is Y during the useful life which is 18 years, i=6%. [26marks] a. Calculate the Equivalent Future Value for this investment. b. Calculate the equivalent annual Value, if there is rehabilitation cost of 10000 OR at the 10th year, additional to the information in 1. c. Calculate the Equivalent Present Value it the operating and maintenance cost for the first 10 years is 2000 OR and for the remaining 7 years of the useful life is 1200 OR, additional to the information in 1. Y Initial cost Annual revenues 52800 9900 1 Q2. A steel workshop of initial cost of X. The expected annual revenue is Y during the useful life which is 18 years, i=6%. [26marks] a. Calculate the Equivalent Future Value for this investment. b. Calculate the equivalent annual Value, if there is rehabilitation cost of 10000 OR at the 10th year, additional to the information in 1. c. Calculate the Equivalent Present Value it the operating and maintenance cost for the first 10 years is 2000 OR and for the remaining 7 years of the useful life is 1200 OR, additional to the information in 1. Y Initial cost Annual revenues 52800 9900 1
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