Consider an asset with upfront cost of $47,655. The cost associated with it during the first...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider an asset with upfront cost of $47,655. The cost associated with it during the first year of operation is $3,053. The cost associated with it during the second year of operation is $11,718. With an interest rate of 0.06, what is a levelized cost payment payable at the end of years 1 and 2, which has the same present value as the actual cost stream at the end of period 0. The annuity formula for an interest rate of 0.06 and t payments is given by 1-(1+i) | = (1+i)* Consider an asset with upfront cost of $47,655. The cost associated with it during the first year of operation is $3,053. The cost associated with it during the second year of operation is $11,718. With an interest rate of 0.06, what is a levelized cost payment payable at the end of years 1 and 2, which has the same present value as the actual cost stream at the end of period 0. The annuity formula for an interest rate of 0.06 and t payments is given by 1-(1+i) | = (1+i)*
Expert Answer:
Answer rating: 100% (QA)
Levelized cost payment for year 1 The levelized cost payment for year 1 is calculated using th... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these accounting questions
-
During its first year of operation in 2014, Browne Sales Corporation made most of its sales on credit. At the end of the year, accounts receivable amounted to $199,000. On December 31, 2014,...
-
During its first year of operation in 2014, Jameson Sales Corporation made most of its sales on credit. At the end of the year, accounts receivable amounted to $175,000. On December 31, 2014,...
-
Consider an asset with zero volatility. We can explicitly calculate the future value of the asset and hence that of a call option with the asset as the underlying. The value of the call option will...
-
Hello, I am not sure onm this and need help please, thank you! For each of the following situations, list which ACID property is being violated, then describe what an ACID-compliant DBMS would have...
-
Universal Air Inc. supplies instrumentation components to airplane manufacturers. Although only a few competitors are in this market, the competition is fierce. Universal uses a traditional...
-
A _______ risk assessment uses SLE.
-
A hemispherical bowl of radius \(R\) is placed in a uniform magnetic field that has magnitude \(B_{0}\) and is in the positive \(z\) direction. The open top of the bowl is in the \(x y\) plane....
-
The following selected transactions apply to Easy Stop for November and December 2013. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the...
-
Sub Saharan Africa: Be able to find Angola, Benin, Burundi, Burkina Faso, Chad, Cameroon, Democratic Republic of the Congo, Eritrea, Ethiopia, The Gambia, Ghana, Ivory Coast, Kenya, Madagascar, Mali,...
-
Griffin and Lasky, Inc. (G&L), supplies industrial automation equipment and machine tools to the automotive industry. G&L recognizes revenue on its long-term contracts over time. Customer orders have...
-
Shaw Landscapes (SL) develops and sells plans for various types of gardens and outdoor spaces. Customers use the plans to install various landscape features such as gardens, ponds, walls, etc. The...
-
What is the formula for measuring price elasticity of demand? What does it mean (in terms of relative price and quantity changes) if the price-elasticity coefficient is less than 1? Equal to 1?...
-
Write a mission statement and a tagline for SafetyWeb, the subject of the You Be the VC 4.1 feature. What is the rationale for the mission statement and the tagline you wrote? YOU BE THE VC 4.1...
-
Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $12 for each unit of its output and sells 52 units of output per day. How much revenue will it take in...
-
This case is fictional, but it is inspired by similar events that occurred on a university campus in Canada in 2014. The opinions presented here represent the viewpoints of an individual student and...
-
Spend some time looking at Equipois, the focus of the You Be the VC 3.2 feature. Name five things that Equipois could have done in its feasibility analysis that would have been particularly helpful...
-
If A = -2 6 1 -7 1 then det (A) = an and A-1 =
-
Which of the companies has the lowest accounts receivable turnover in the year 20X2? a. Company A. b. Company B. c. Company C. d. CompanyD. 20X1 20X2 Credit Sales Average Receivables Balance $1.0...
-
Assume the same facts as in E12-30, but that Watney intends to sell half of the Hamel bonds immediately and to hold the other half of the bonds to sell once the price of the bonds appreciates...
-
At December 31, 2013, Hull-Meyers Corp. had the following investments that were purchased during 2013, its first year of operations: No investments were sold during 2013. All securities except...
-
At the beginning of 2013, Quentin and Kopps (Q&K) adopted the dollar-value LIFO (DVL) inventory method. On that date the value of its one inventory pool was $84,000. The company uses an internally...
-
Fitch and Wall have been in partnership for many years sharing profits and losses in the ratio 5:3 respectively. The following was their statement of financial position as at 31 December 2016: On 1...
-
Alan, Bob and Charles are in partnership sharing profits and losses in the ratio 3:2:1 respectively. The statement of financial position for the partnership as at 30 June 2016 is as follows: Charles...
-
The statement of financial position of A. Barnes and C. Darwin at 31 March 2015 is as follows: The partners share profits and losses: Barnes three-fifths and Darwin two-fifths. At the date of the...
Study smarter with the SolutionInn App