Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show all your work, bestof kwek, to be SIA00 in year I, Costs maintenanse of buildings at an industrial eomplex are ear thereafter through year

image text in transcribed
Show all your work, bestof kwek, to be SIA00 in year I, Costs maintenanse of buildings at an industrial eomplex are ear thereafter through year nine. three, 00 in year four and amount decreasing using "interest rate of 10 per year, find the equivalent went the expenditures arithmetie formulas at etid of Yeati 2. costs pected to s50,000 n year three, S47500 in The of fuel for a smelting operation are ex year four and amounts deereasing by 5% per year thereafter fim ten, At an interest rate ear of per year, find the present worth of the fuel cost 3, The data for new and used machines are shown below: Used machine New machine 40,000 1500 Initial cost(s) 2,000 Annual operating cost (syear) 8,000 10,000 Salvage value (s) 5,000 Life (years) To compare the machines on the basis of a present worth analysis, calculate the present worth of the machines at an interest rate of 6% per year, Which machine you will pick? Why? 4, A hydroelectric dam would cost S50,000,000 to build, and annual maintenance cost of SI,000,000 need to be made per year, In addition to that, every 6 years, a major overhaul cost of $5,000,000 needs to be made, Assuming the interest rate of 10% per year, and the dam is expected to last indefinitely, what would be the capitalized cost of the dam? Show all your work, bestof kwek, to be SIA00 in year I, Costs maintenanse of buildings at an industrial eomplex are ear thereafter through year nine. three, 00 in year four and amount decreasing using "interest rate of 10 per year, find the equivalent went the expenditures arithmetie formulas at etid of Yeati 2. costs pected to s50,000 n year three, S47500 in The of fuel for a smelting operation are ex year four and amounts deereasing by 5% per year thereafter fim ten, At an interest rate ear of per year, find the present worth of the fuel cost 3, The data for new and used machines are shown below: Used machine New machine 40,000 1500 Initial cost(s) 2,000 Annual operating cost (syear) 8,000 10,000 Salvage value (s) 5,000 Life (years) To compare the machines on the basis of a present worth analysis, calculate the present worth of the machines at an interest rate of 6% per year, Which machine you will pick? Why? 4, A hydroelectric dam would cost S50,000,000 to build, and annual maintenance cost of SI,000,000 need to be made per year, In addition to that, every 6 years, a major overhaul cost of $5,000,000 needs to be made, Assuming the interest rate of 10% per year, and the dam is expected to last indefinitely, what would be the capitalized cost of the dam

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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_2

Step: 3

blur-text-image_3

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

Handbook Of Research Methods And Applications In Empirical Finance

Authors: Adrian R. Bell, Chris Brooks, Marcel Prokopczuk

1st Edition

1782540172, 978-1782540175

More Books

Students also viewed these Finance questions