Please help with my construction manegment hw question. QUESTION 9 A constructio

Question

Please help with my construction manegment hw question.

QUESTION 9 A construction company has bought a new loader with a total maintenance cost of $250 in year 1. If the maintenance costs increase by an additional S250 per year in each subsequent year with an interest rate of 10% and a useful life of 15 years, how much money should loader? the company prepare now to cover the total maintenance costs of the A. $11,940 B. $10,038 OC $1,902 D.$14,111 QUESTION 10 The maintenance cost of a construction machine is expected to be $1,000 for the first year and increase $500 per year after that. Assuming an interest rate of 6% compounded annually, how much money should be prepared for the annual maintenance cost that is most nearly equivalent to the maintenance cost over 10 years? A. $3,000 B. $2,000 O C. $2,800 D.$1,807

Explanation / Answer

9. Ans: $11,940

Explanation:

P = [A1 + G(A/G, i, n)] (P/A, i, n)

   = [250 + 250(A/G, 10%, 15)] (P/A, 10%, 15)

   = [250 + 250(5.279)] (7.606)

   = (250 + 1319.75) (7.606)

   = $11,940

10. Ans: $3,000

Explanation:

P = [A1 + G(A/G, i, n)]

   = [1000 + 5000(A/G, 6%, 10)]

   = [1000 + 500(4.022)]

   = (1000 + 2011)

   = $3011

So, the answer will be $3,000

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