Maintenance costs on a piece of equipment begin at $1000 in period 1 and increase by $250 each year over its 5-year life. If the interest rate is 8%, how much money should be put aside now to pay these maintenance costs
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Maintenance costs on a piece of equipment begin at $1000 in period 1 and increase by $250 each year over its 5-year life. If the interest rate is 8%, how much money should be put aside now to pay these maintenance costs?
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- I have purchased a machine worth P1,665,509.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?An asphalt road requires a yearly maintenance beginning a year from now. For the 1st four years, it will be P 539,853 per year. For the next four years, it will be P 1,126,841 per year. On the succeeding four years, it will be 1,021,631 per year. If interest is 20% cpd. annually, what is the present value of the repair cost?I have purchased a machine worth P1,680,676.00. And it needs maintenance every 6 months starting from its purchased date for the first 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?
- An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs. After this P90,000 will be needed for repairs at the end of each year for the next 5 years, then P120,000 at the end of each year for the next 5 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 12-year period?An asphalt road requires no repairs until the end of 2 years. At the end of 3rd year, P90,000 will be needed for repairs for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If moneyis worth 14% compounded annually, what is the present value of the repair cost and its equivalent uniform annual cost for the 12-year period?I have purchased a machine worth P1,622,721.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money shoukd be prepare today to finance the requirement if the interest rate is 0,10 compounded quarterly?
- The maintenance of a room air conditioner is expected to be P 200,000 at the end ofthe first year and is expected to increase P 10,000 each year for the following 7 years. Assuming rate of interest at 8%, compute: A) The sum of money to be set aside now for the future maintenance of the roomB) The equivalent uniform annual maintenance costThe maintenance cost for a sewing machine after one year is expected to be P500. The cost will increase by P50 each year for the subsequent 9 years. The interest is 9% compounded annually. What is the present worth of maintenance for the machine over the full 10 years.An annual maintenance cost of a generator is P1000 after two years and it is estimated to increase by 10% each year for the subsequent 7 years. Calculate the total maintenance cost 2 years after the last payment.
- Annual maintenance costs for a particular section of highway pavement are $2500. The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500. If maintenance costs are the only saving, what investment can be justified for the new surface? Assume interest at 5%.Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 8 years, followed by a $20,000 expenditure in the year 18 and a $30,000 expenditure in the year 28. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge?Maintenance cost for small bridge with an expected 50 year life are estimated to be $10,000 each year for the first 5 years, followed by a $15,000 expenditure in the year 15 and a $12,000 expenditure in the year 30. If interest rate is at 8% compounded monthly a) What is the equivalent present value of the entire maintenance cost of that bridge? b) what is the equivalent uniform annual cost over the entire-50 year period?