1. The initial cost of a pickup truck is $12,622 and will have a salvage value o
ID: 2505752 • Letter: 1
Question
1. The initial cost of a pickup truck is $12,622 and will have a salvage value of $4,336 after five years. Maintenance is estimated to be a uniform gradient amount of $104 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.34 per mile for 330 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?
Enter your answer as follow: 123456
2.A beautiful bridge is being built over the river that runs through a major city in your state. The cost of the bridge is estimated at $600 million. Annual costs of the bridge will be $200,000, and the bridge is estimated to last a very long time. If accountants in city hall use 3% as the interest rate for analysis, what is the annualized cost of the bridge project? Choose the closest answer.
$219,500 million
$18.2 million
$18 million
$200,000
$20,000 million
$600 million
3. A rich singer has donated $318,589 to endow a university professorial chair in Bohemian Studies. If the money is invested at 10.43%, how much can be withdrawn each year, ad infinitum (indefinitely), to pay the Professor of B.S.?
When conducting incremental analysis, what step must always be taken immediately prior to beginning the pairwise comparisons?
Order to alternatives from lowest to highest internal rate of return
Order the alternatives from lowest to highest present worth
Order the alternatives from lowest to highest initial investment
Order the alternatives from lowest to highest salvage value
Order to alternatives from highest to lowest internal rate of return
Order the alternatives from highest to lowest annual worth
Order the alternatives from lowest to highest annual worth
Order the alternatives from highest to lowest present worth
Order the alternatives from highest to lowest salvage value
Order the alternatives from highest to lowest initial investment
4.
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,537 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5,105 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $754. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%?
Enter your answer as follow: 123456
5.
A rich singer has donated $318,589 to endow a university professorial chair in Bohemian Studies. If the money is invested at 10.43%, how much can be withdrawn each year, ad infinitum (indefinitely), to pay the Professor of B.S.?
Enter your answer as follow: 123456
6.
You expect to receive the following:
What is the uniform annual payment for 12 years is equivalent to the above payment if the interest rate is 8%?
Enter your answer as follow: 123456
$219,500 million
$18.2 million
$18 million
$200,000
$20,000 million
$600 million
Explanation / Answer
When conducting incremental analysis, what step must always be taken immediately prior to beginning the pairwise comparisons?
Order the alternatives from lowest to highest initial investment
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