Question: What is the equivalent present worth of annual operation and maintenance (O&M) cost of $300,000/year at a 2% interest rate for a bridge that

What is the equivalent present worth of annual operation and maintenance (O&M)

What is the equivalent present worth of annual operation and maintenance (O&M) cost of $300,000/year at a 2% interest rate for a bridge that will be in operation indefinitely? The monthly maintenance cost of a bridge is $20,000. What is the capitalized cost of the maintenance at an interest rate of 6% compounded monthly?

Step by Step Solution

★★★★★

3.41 Rating (145 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the equivalent present worth of the annual operation and maintenance OM cost of 300000y... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Corbin is 25 years old today and he wishes to accumulate enough money over the next 35 years to provide for a 20 years retirement annuity of RM100,000 at the end of each year starting on his 60th...

1.If a company has lower ROE and a lower P/BV ratio then would it show a higher sustainability ratio or g? Why or why not? 2.If one wants to find the future earnings capability of a firm then what...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

International Paper reported the following items for the current year: Sales = $3,500,000; Cost of Goods Sold = $1,250,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000;...

Why does monetary policy have a greater effect on aggregate demand in an open economy than in a closed economy?

What information is needed to measure the absolute profitability of a segment?

discuss the work-related factors that contribute to the occurrence of accidents and errors;

Melodee Lane Lingerie Co. was a tenant in a building that was protected against fire by a sprinkler and alarm system maintained by the American District Telegraph Co. (ADT). Because of the latters...

Exercise 2: Implement calculate_S and calculate_R Recall that the element-wise squared Euclidean distance matrix D O DE Rnxm is defined by [D D] = (x; zj) (x; Zj) - - Also, the matrices S, RE Rnxm...

9- If Harry and Kerry (each a 35-percent shareholder) file a revocation on April 14, 2019 to terminate their S corporations S election, what is the effective date of the S corporation termination...

What do we call the ratio of a number of fission produced by a given generation of neutrons to the number of fission of the preceding generation? [A] Critical factor [B] Energy factor [C]...

Glycol is added to aviation gasoline because it: [A] reduces evaporation of petrol [B] increases efficiency of petrol [C] prevents freezing of petrol [D] reduces consumption of petrol

When ice cubes are made, the entropy of water: [A] does not change [B] decreases [C] increases [D] may either increase or decrease depending on the process used

In 1817, who attempted to sort elements with similar properties in a logical order into groups? [A] Emmy Noether [B] Henry Moseley [C] Dobereiner [D] Mendeleev

Sodium bicarbonate decomposes above 70 C, making it usable in bakery products. What end product of this thermal decomposition process contributes to its use in baking? [A] Hydrogen [B] Carbon Dioxide...

Examples of non - functional requirements include: requirements related to performance, storage limits , code quality, documentation, accessibility, security, reliability, scalability, portability,...

Chris Zulliger was a chef at the Plaza Restaurant in the Snowbird Ski Resort in Utah. The restaurant is located at the base of a mountain. As a chef for the Plaza, Zulliger was instructed by his...

Data for Rocastle Company are presented in P13-7B. Further analysis reveals the following. 1. Accounts payable pertains to merchandise creditors. 2. All operating expenses except for depreciation are...

John Harbeck is confused about computing physical units. Explain to John how physical units to be accounted for and physical units accounted for are determined.

The following data were taken from the records of Moxie Company for the year ended December 31, 2014. Instructions (a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used...

A manager must make a decision on delivery alternatives. There are two shippers, A and B. Both offer a two-day rate. In addition, A offers a three-day rate and a nine-day' rate, and B offers a...

What is annual service level and how is it related to z?

A brick maker (BM) in Alberta mixes dry ink into its bricks to make them brown. BMs demand for dry ink is 60 tons per year. Currently, BM buys the dry ink from an import merchant that buys the ink...