Question: Question 4 [Total 15 marks] A big construction equipment is getting old. Major overhaul expenses of $ (50,000 + 1,000) are expected to occur at

Question 4 [Total 15 marks]

A big construction equipment is getting old. Major overhaul expenses of $ (50,000 + 1,000) are expected to occur at EOY (End of Year) 3 and will continue every three years thereafter up to and including year 15. The discount rate is assumed to be (3 )% per year.

(a)

Draw a cash-flow diagram by using the convention mentioned in Lecture 3.
(b)

What is the present equivalent value of the overhaul expenses as of today? Round off your final answer to the nearest hundred.
(c)

What is the future equivalent value of the overhaul expenses at EOY 15? Round off your final answer to the nearest hundred.
(d) What is the annual equivalent expense from EOY 4to EOY 15? Round off your final answer to the nearest hundred. [Hint: You need to figure out P3 first]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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 Economics Questions!

Q:

D8=1 Question 2 [Total 15 marks] Major overhaul expenses of US$ (5,000 + D8x100) each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY (End of Year) 4 and...

Q:

D8=1 If you don't know .Please do not copy others.Thanks! Don't care the Lecture 3 Question 2 [Total 15 marks] Major overhaul expenses of USS (5,000 + D8x100) each are anticipated for a large piece...

Q:

D8=1 Question 2 [Total 15 marks] Major overhaul expenses of USS (5,000 + D8x100) each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY (End of Year) 4 and...

Q:

ontent/0/BBA%20Hons%20%20Accounting%20and%20Finance%20Mnagement%20CASES 10 / 10 90% + year in additional revenues. The driver's salary and other cash operating expenses are expected to be R176 000...

Q:

TOTAL SECTION A: 18 MARKS SECTION B (33 marks) PLEASE ANSWER ALL QUESTIONS IN SECTION B IN THE 4 PAGE BOOK AVAILABLE Question 1 (16 marks) You have been recently employed as a junior analyst at Ultra...

Q:

Question 1: 10 marks 1. The Miller-Modigliani theorem proposes that debt is irrelevant. Under what conditions is this true? When these conditions are relaxed, how does changing the debt ratio affect...

Q:

ChallengeMe Pty Ltd is a manufacturer of tennis equipment and fashion wear. The statement of financial position as at 30 June 2020 and details of expenses and revenues for the year ending 30 June...

Q:

Question 1: (Marks 10) You own a financial accounting services called MyOwnWork Consultancy Pty Ltd. It's the company you have established after graduating with honours degree in accounting and...

Q:

I need belp with question 5 of this document. I have attempted it but am unable to tally it. UNIT CODE: ACT503 UNIT NAME: CORPORATE ACCOUNTING Assignment One Information Semester one 2017 Assessment...

Q:

hi, i need answer for all the attached questions. thanks UNIT CODE: ACT503 UNIT NAME: CORPORATE ACCOUNTING Assignment One Information Semester one 2017 Assessment 30% Maximum Marks: 90 Instructions:...

Q:

Two plane mirrors face each other 2.0m apart as in Fig. 23-53. You stand 1.5m away from one of these mirrors and look into it. You will see multiple images of yourself. (a) How far away from you are...

Q:

please use 168 kg as the mass of the sphere 4 the Find the angular acceleration as the sphere rolls down the inclined surface. Ceven, mass M = Mg = 0.2, Y= 15 P(5) Last 4 disels of 5 # |kg +100 MK =...

Q:

( 8 points ) Portfolio i ' s returns are described by: r i = r f 1 ( r m - r f ) 2 ( r c - r f ) 0 . 5 where r m is the return on the market index, r c is the return on the commodity index and r f is...

Q:

In September 2010 the plaintiffs Narinder Dhillon and Camy Grewal went to a wedding show (Trade show, Wedding expo). They saw a booth where couples could enter a draw for a prize worth $25,000...

Q:

7. Give an example of how the authority principle can be used to influence others.

Q:

8. Give an example of how the scarcity principle can be used to influence others.

Q:

2. A Soviet invasion of Poland would lead to the severing of diplomatic relations between the United States and the Soviet Union.