please do them all Question 1 (1 point) A bridge is being built over the river t
ID: 367369 • Letter: P
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please do them all
Question 1 (1 point) A bridge is being built over the river that runs through a major city. The cost of the bridge is estimated at $600 M. Annual costs of the bridge will be $200,000, and the bridge is estimated to last a very long time. If accounts in city hall use 3% as the interest rate for analysis, what is the annualized cost of the bridge project? O 18,840,000 o $17,800,000 O $18,000,000 o $18,200,000 Save Question 2 (1 point) The incomes for a business for 3 years are as follow: $8,000, $9,000 and $10,000. If the value of money is 12% what is the equivalent annual benefit (periodic equivalent) for the 3 year period? o $8,925 O$8,993 $26,449 O $21,435 Save Question 3 (1 point) New product tracking equipment costs $120,000 and will have a $10,000 salvage value when disposed in 10 years. Annual repair costs begin at $5,000 in the fifth year and increase by $500 per year thereafter until disposed of. If interest is 10%, what is the equivalent annual cost of ownership? (Note: this is an Excel problem-would be time consuming on a calculator) O $134,325 o $14,325 o $21,861 o $2,331 SaveExplanation / Answer
1. the total cost is= $60,000,000*0.03+200,000= $18,200,000, the $200,000 is the maintanance cost of the bridge and $18,000,000 is the interest on the $600 M
hence option D is correct
2. option A is correct
3. the investment is= $120,000, interest rate is 10%, life of the machine is 10 years, and the maintanace costs from year 5 onwards 5000, 5500, 6000, 6500,7000 and 7500 respectively from year 5 to year 10.
the interest cost of the machine= 120,000*0.1*10= $120,000, plus purchase cost= $120,000
total cost of machine= $240,000, and the maintanace cost total is= $46050
scrap value is $10,000. the net cost will be= 240,000+46050-10,000= 276,050/10= 27,605
the approximate answer is option C
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