Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Q3. A machine of initial cost of X. The expected annual revenue is Y during the useful life which is 11 years, annual operation and

image text in transcribed

image text in transcribed

Q3. A machine of initial cost of X. The expected annual revenue is Y during the useful life which is 11 years, annual operation and maintenance cost is Z, i=6%. [26marks] a. Calculate the Equivalent Present Value for this investment. b. Calculate the equivalent annual Value, if there is rehabilitation cost of 17000 OR at the 7th year, additional to the information in 1. c. Calculate the Equivalent Future Value it the operating and maintenance cost for the first 5 years is 3000 OR and for the remaining 6 years of the useful life is 1500 OR, additional to the information in 1. Note: draw cash flow for each request 1910223 116000 45500 24500 Q3. A machine of initial cost of X. The expected annual revenue is Y during the useful life which is 11 years, annual operation and maintenance cost is Z, i=6%. [26marks] a. Calculate the Equivalent Present Value for this investment. b. Calculate the equivalent annual Value, if there is rehabilitation cost of 17000 OR at the 7th year, additional to the information in 1. c. Calculate the Equivalent Future Value it the operating and maintenance cost for the first 5 years is 3000 OR and for the remaining 6 years of the useful life is 1500 OR, additional to the information in 1. Note: draw cash flow for each request 1910223 116000 45500 24500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions