5)What is the capitalized cost if I want to endow a University program that has

Question

5)What is the capitalized cost if I want to endow a University program that has annual costs of S 140,000 at 8% per year interest? A) 2,000,000 B) 2,500,000 C) 1,750,000 D) 3,250,000 A deposit of S4000 at an interest rate of 10% per year compuned semi-mnwally (2 times a year) will be equivalent to how much money S years from today? 6) A) 5050 B) 5856 C) 6015 D) 6516 79An engineer deposits S1000 per month into an account that pays interest at 10% per year compounded semi- annually(2 times a year). How much will be in the account at the end of 7 years? Assume no inter-period compounding A) 60,063 B) 107,248 C) 88,978 D) 117,592 Listed below are two solutions for a service issue. Work out the present costs for option for a 6 year period oftime. Use a 7% per year interest rate. 8) OptionI 14,000 Option 2 25,000 First Cost (S) Maintenance cost (S) Salvage (S) Life 1500 per year 1000 1000 per year 1200 3 years 6 years Option 1: A) 17,120 B) 33,888 C) 31,095 D) 41,057

Explanation / Answer

5) The answer is C-) 1750000

because we know that capitalized cost is equal to = A / i

where A = Annual cost and i = interest rate.

we have A = 140000 and i = 8% or 0.08

P = 140000 / 0.08

P = 1750000

6) please uload it again. it againts chegg policy

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