Determine the present worth of the maintenance cost

Assignment Help Microeconomics
Reference no: EM13750681

A general contractor is interested in buying new construction equipment for grading with a purchase price of $84,000. The annual interest rate is 5% compounded annually. The following information is available for the equipment:

Maintenance cost:

1. Oil change and light maintenance = $60/month

2. Major maintenance schedule

Year  Major maintenance cost  
1 $900
2 $900
3 $6,800
4 $900
5 $2,300

Operation cost:

1. Driver/operator (annually) = $40,300 for the first year with 4% annual increase

2. Garage cost = $240/month

Income/benefit information:

1. Lease to others = $600/month

2. In-house use = $5,000/month

A)  Determine the present worth of benefit

B)  Determine the Equivalent Uniform Annual Benefit, EUAB

C)  Determine the present worth of the maintenance cost

D)  Determine the present worth of the operation cost

E)  Determine the present worth of all of the expenses

F)  Determine the Equivalent Uniform Annual Cost, EUAC

G) Determine the Equivalent Uniform Annual Worth, EUAW

Reference no: EM13750681

Questions Cloud

Legal and technical challenges and issues : From the e-Activity, determine some of the legal and technical challenges and issues with the implementation of CIPA
Determine the security controls and policies : Describe the business challenges associated with the domain you selected. Determine the security controls and policies needed to overcome these challenges
Security solutions development process : Interpret how context, scope, and feasibility influence the development of a security process, and provide an example of a security solutions development process with your response
Write a short paperreviewing the brochure : Write a short paperreviewing the brochure. Use the Grading Criteria (below) to structure your critique, and include current nursing or healthcare research to support your critique.
Determine the present worth of the maintenance cost : Determine the present worth of benefit, determine the Equivalent Uniform Annual Benefit, EUAB and determine the present worth of the maintenance cost
Analyze the key functions a chief information officer : Analyze the key functions a Chief Information Officer (CIO) performs to define, develop, implement, and support ongoing security countermeasures
What is the manufacturer specific id for intel core : What is the manufacturer specific ID for Intel Core and What are some causes of the number of bytes on the wire exceeding the number of bytes being captured
Write an essay on king henry viii : Write an essay on King Henry VIII. described as the "inventor of the totalitarian government." He did not tolerate any criticism of his government and took various steps to silence it. Describe and analyze those steps.
How could the cyber attack be dettered : A recent malicious cyber attack that cyber deterrence was used . Pre-Emp Deterence CNE Cyber attacks. How could the Cyber Attack be dettered

Reviews

Write a Review

Microeconomics Questions & Answers

  Suppose that the probability that a used bike is a lemon

suppose that the probability that a used bike is a lemon low quality is p and the probability that a used bike is a

  Changes together affect johns desired health capital

Suppose that John Smith gets promoted to a job that causes two changes to occur simultaneously: (i) John earns a higher wage, and (ii) a safer environment causes his health to depriciate less rapidly. How would these two changes together affect John'..

  A decrease in aggregate demand is seen

A decrease in aggregate demand is seen as a(n): The economy is in a recession. Which of the following is a fiscal policy that the government should adopt to strengthen the economy?

  Discuss monopoly to provide a brief overview of company

Discuss the current monopoly to provide a brief overview of the company. How did the monopoly arise? Did the monopoly increase barriers to entry? Does the company behave like a monopoly or more like a competitive firm?

  What would be the strongest defense to the lawsuit

Marianne and Ellen want to form a corporation, Bridal Flowers Company, and thus retain the Bobbo Law Firm to prepare the articles of incorporation. Bobbo Law Firm files the articles of incorporation but Bobbo's paralegal forgot to have Marianne.

  The government will generate economic growth.

Explain why the Tea Party argument as to shrinking the government will generate economic growth.

  Business etiquette is an important component for business

You will write a one-to-two page paper about your specific chosen topic. Discuss at least four points that are important considerations for the topic you chose and include 2 or 3 sentences discussing why each point is important to consider as a busin..

  Question about government policies

Explain a political, economic, or social interaction of decision makers that you have heard about in words. The condition should involve decision makers, available actions

  A soft drink bottler collected monthly data

A soft drink bottler collected monthly data on its sales of 12 ounce cans at different prices.

  The interests of the seller and of society coincide

With respect to resource allocation, the interests of the seller and of society coincide in a purely competitive market but conflict in a monopolized market.

  Kind of termination occurs due to operation of law

When an agent acquires interest against the principal’s interest, without the principal’s knowledge, the agency relationship terminates due to: Which of the following kind of termination occurs due to operation of law?

  How is private consumption today affected

Assume that we have Ricardian equivalence. This implies that consumption depends on ex- pected lifetime income and that individuals understand the governmentís intertemporal budget restriction. B) How is private consumption today affected.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd