It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $1,000. Assuming an interest rate of 4% year compounded quarterly, determine the capitalized cost for maintaining the statue forever. Group of answer choices $25,000 $36,000 $28,670 $24,630.54
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- Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. The FW of the Alternative 1 is $ (Round to the nearest dollar.) Ĵ Today, you have $40,000 to invest. Two investment alternatives are available to you. One would require you to invest your $40,000 now, the other would require the $40,000 investment two years from now. In either case, the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARR of 10%, what should you do with the $40,000 you have? Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. The FW of the Alternative 1 is S. (Round to the nearest dollar.)The required investment cost of a new, large shopping center is $51 million. The salvage value of the project is estimated to be $18 million (the value of the land). The project's life is 12 years and the annual operating expenses are estimated to be $16 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. To make the shopping center a worthwhile venture, the minimum annual revenue must be $ million per year. (Round to three decimal places.) Reference Discrete Compounding; i=15% Single Payment Uniform Series Compound Amount Compound Sinking Fund Capital Recovery Factor Present Amount Present Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FA PIA AIF AIP 1.1500 0.8696 1.0000…Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash flow profiles if their TVOM is 14.5% per year compounded yearly. End of Year Series 1 Series 2 $0 $0 $275 1 $325 2 $375 $35X 3 $425 $25X 4 $0 $15X 5 $0 $5X Value of X: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +4.
- Jane has $240,000 to invest and is considering the following two investment opportunities.Investment A requires an initial investment of $240,000 and promises to return $57,040 every year for 5 years.Investment B requires an initial investment of $216,000 and is expected to return $51,200 every year for 5years. If Jane’s MARR is 5% per year compounded annually, which investment should she choose, if any?You have received the proposal to invest $1,000,000 in exchange for receiving income of $75,000 at the end of the first month that would decrease 0.3% each month starting from the 2nd month. Expenses are estimated at $25,000 at each end of the month, starting from the 1st month. Assume that the proposal will last 5 years and that the minimum acceptable rate of return (m) is 1.5% per month. What does the Present Value criterion recommend? Show your work. If flow patterns are found (uniform, arithmetic, exponential), use factors.5. Henry Mueller Supply Co. sells tamperproof, normally open thermostats (i.e., thermostat closes as temperature rises). Annual cash flows are shown in the table below. Determine the future worth of the net cash flows at an interest rate of 10% per year. Year 1 Income, $1000 200 Cost, $1000 90 2 200 90 3 200 90 4 200 90 5 200 90 6 200 90 7 200 90 8 200 90
- Find the capitalized cost of an infinite series of annual payments elal to $1,000 using an interest rate of 896 compounded annually. For the toolbar, press ALT+F10 (PC or ALT+FN+F10 (Mac.A mastercard compounds monthly and charges an interest of 1.5% per month. What is the effective annual interest rate per year?choices:18.56%20.56%19.56%21.56%Hadeel borrows money in the senior year to buy a new car. The car dealership allows to defer payments for 12 months, and Hadeel makes 36 end of month payments thereafter. If the original loan is $24,000 and interest rate is 0.5% per month on the unpaid balance, how much will Hadeel payments be? $698.80 $774.62 $620.65 $700.56 detailed answer without usage of excel
- Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen). The MARR is 4% per year. Lead Acid Lithium Ion $5,000 $14,000 Capital investment Annual expenses Useful life $2,750 $2,400 12 years 18 years Market value at end of useful life $0 $2,600 Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year. Determine which alternative should be selected based on the PW method. Assume repeatability and use a study period of 36 years. The PW of the Lead Acid is $ - 72734.32. (Round to the nearest hundreds.) The PW of the Lithium Ion is $206329. (Round to the nearest hundreds.) Which alternative should be selected? Choose the correct answer below. Lithium Ion Lead AcidThe annual income from an apartment complex is $21,128. The annual expense is estimated to be $3,272. The apartment complex could be sold for $108,281 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if you were to buy it now?Problem 03.013- Annual worth calculations What is the equivalent annual cost in years 1 through 9.00 of a contract that has a first cost of $77,000 in year 0 and annual costs of $17,000 in years 3 through 9.00? Use an interest rate of 15.00% per year. (Round the final answer to three decimal places.) The equivalent annual cost is determined to be $ I