User Account

All Pages

What is the equivalent annual maintenance cost

Assignment Help Accounting Basics
Reference no: EM132767022

Steve is working on estimating the costs of a bridge installed on the Kingston road. According to his estimation, the bridge needs $30,000 for the first 10 years, $40,000 for years 11 to 15, and $100,000 each year after that. The bridge has an infinite service life. If the sponsor expects 12% as a rate of return:

Problem a. What is the present value of all the costs required for the project?

Problem b. What is the equivalent annual maintenance cost over the infinite service life of the bridge?

Reference no: EM132767022

Questions Cloud

Why would you perform a silent installation : Why would you perform a silent installation? Under what circumstances would a system administrator lose access to an instance of SQL Server? Give an example.
What amount of gain on sale of investment should recognized : On January 1, 2018, If the average approach is used, what amount of gain on sale of investment should be recognized in 2018?
Should the company change its debt-equity ratio : Tool Manufacturing has an expected EBIT of $63,000 in perpetuity and a tax rate of 21 percent. Should the company change its debt-equity ratio
Describe importance of lighting and access control : Complete a Physical Security Assessment (internal and external) of your place of work or living area. If you use your work area make sure you inform.
What is the equivalent annual maintenance cost : What is the equivalent annual maintenance cost over the infinite service life of the bridge? Steve is working on estimating the costs of a bridge installed
Compute the anticipated break-even sales : Currently, the unit selling price of a product is $340, the unit variable cost is $280, Compute the anticipated break-even sales
Discuss about structure of a qualitative literature review : Describe the differences in the content and structure of a qualitative literature review as compared to a quantitative literature review.
Prepare journal entry required to be prepared by bkk ltd : Prepare the journal entry required to be prepared by BKK Ltd. on June 1, 2019. On June 1, 2019 Allan Inc. factored $400,000 of accounts receivable
Make a schedule starting with pretax financial income : Interest revenue on State of New York bonds totaled $3,800. Make a schedule starting with pretax financial income in 2017

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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