cost of a statue erected in front of a public 7. It is estimated that the annual
ID: 1212904 • Letter: C
Question
cost of a statue erected in front of a public 7. It is estimated that the annual maintenance interest rate of 4% year A. $25.uarterly, determine the capitalized cost for maintaining the statue. Philipp Inc, a table below ng in a state capital would be S1,000. Assuming an interest rate D. $28,670 C.$36,000 B. $24,630.54 8. the plant in Teierman company is considering the following two equipment alternatives for eninessee. The cost information for the two machines are consideration are in Machine Y $66,000 achine Initial cost $80,000 Benefits/year $12,000 for the first 10 years $9,000 per year for 20 and $8,000 for the next 10years. years Life 20 Salvage value $30,000 MARR 10% The NPW of machine X is A. $16,970 B. S17,150 C. $18,100 D. $19,400 Data for Problems 9 and 10 In an equipment acquisition proposal, MKBK Enterprises has worked out to deal on the interest rate with the vendor. The equipment is being financed for 10 years with monthly payments. The deal with the vendor worked out is as below. The interest rate is 1% per month for the first 30 payments and for the rest of the payments the interest rate would be ¾ % per month. The equipment cost $1,000,000. 9. Determine the monthly payment for the first 30 months. A. $13,682 B. $15,400 C. $14,300 D. $12,700 10. Determine the amount of 31-st monthly payment. A. $13,682 B. $13,014 C. $14,300 D. $12,700 1. As soon as she graduated with an engineering degree and started working, Jamie bought a c for $40,000. A down payment of $10,000 was paid by her dad as graduation gift. The rest the amount was financed with Generous Motors at 3% nominal interest with 60 monthly payments, the first payment which is to start at the end of 13th month. Her monthly paym is equal toExplanation / Answer
7.
capitalized cost = annual maintainace cost / annual interest rate
we have 4% as quarterly compounding
so we have annual rate = (1+(4%/4))^4-1=4.06%
capitalized cost = annual maintainace cost / annual interest rate = 1000/(4.06%)=24630.54
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