In: Operations Management
a piece of construction equipment will cost $71,000 new and will have an expected life of 6 years, with no remaining value at the end of its life. what is the equivalent uniform annual cost of this piece of equipment if the interest rate is 10%?
In: Economics
Is the accumulated cost of construction work in progress recorded as an asset anywhere within the financial statements or notes? Which fund, or funds, account for cash received, or receivables created, from sales of general capital assets? Are the proceeds of sales of general capital assets reported as an other financing source or as revenue.
In: Accounting
Carl's Construction Inc. will buy a machine that has an initial cost of $1,200,000 and is expected to be useful for 8 years. Several estimations have been created but the company is going to focus on 3 main scenarios. One scenario estimates yearly benefits of $310,000 and O&M costs of $60,000 per year with a 30% chance of occurrence. The second scenario involves benefits of $280,000 per year and O&M costs of $70,000 annually with a 50% chance of occurring. The last scenario involves annual benefits of $240,000 and annual O&M costs of $80,000 with a probability of 20%. The company uses an interest rate of 7%. What is the standard deviation of this project?
In: Economics
Carl's Construction Inc. will buy a machine that has an initial cost of $1,200,000 and is expected to be useful for 8 years. Several estimations have been created but the company is going to focus on 3 main scenarios. One scenario estimates yearly benefits of $310,000 and O&M costs of $60,000 per year with a 30% chance of occurrence. The second scenario involves benefits of $280,000 per year and O&M costs of $70,000 annually with a 50% chance of occurring. The last scenario involves annual benefits of $240,000 and annual O&M costs of $80,000 with a probability of 20%. The company uses an interest rate of 7%. What is the expected net present value (NPV) of this project?
In: Economics
In 1988, Pearl Limited completed the construction of a building
at a cost of $1.76 million; it occupied the building in January
1989. It was estimated that the building would have a useful life
of 40 years and a residual value of $400,000.
Early in 1999, an addition to the building was constructed at a
cost of $760,000. At that time, no changes were expected in its
useful life, but the residual value with the addition was estimated
to increase by $190,000. The addition would not be of economic use
to the company beyond the life of the original building.
In 2017, as a result of a thorough review of its depreciation
policies, company management determined that the building’s
original useful life should have been estimated at 30 years. The
neighbourhood where the building is has been going through a
renewal, with older buildings being torn down and new ones being
built. Because of this, it is now expected that the company’s
building and addition are unlikely to have any residual value at
the end of the 30-year period. Pearl Limited follows IFRS for its
financial statements.
Calculate the annual depreciation that was charged from 1999 through 2016.
Annual depreciation, 1999 through 2016
In: Accounting
The construction cost of a parking facility on a local university campus is $200,000. Assume that
maintenance will begin on the facility at the end of the third year of operation, and will increase by
$500/year until the end of the useful life of the facility. Maintenance costs are expected to accrue to
$2,000 during the third year of operation. If the interest rate is 7%, and the facility is expected to last
25 years, find the following (5 points):
a) The present worth of the maintenance costs of the facility (2 points)
b) The facility’s annual maintenance costs. (2 points)
c)
The university wants to charge an annual decal rate of $200/year. Is this a good economic
decision if there are 50 spaces in the parking facility? (1 point)
In: Civil Engineering
Mass Waste Disposal Inc. is considering the construction of a facility at a cost of $20 million. The project will produce positive cash flows of $7 million per year for the next 4 years but the 5th and final year will have a net negative cash flow of $5 million. If the reinvestment rate is 10% and the cost of capital is 9%, the MIRR of this project is ________ and the project should be ________. (accepted/rejected) Show all work and explain for credit.
In: Finance
Mass Waste Disposal Inc. is considering the construction of a facility at a cost of $20 million. The project will produce positive cash flows of $7 million per year for the next 4 years but the 5th and final year will have a net negative cash flow of $5 million. If the reinvestment rate is 10% and the cost of capital is 9%, the MIRR of this project is ________ and the project should be ________. (accepted/rejected) Show all work and explain
In: Finance
1. Nineteenth century liberalism included the idea of all of the following except
a. property qualifications for voting.
b. women's suffrage.
c. a government of limited powers.
d. protection of basic civil rights.
e. a constitutional state or government.
2. The so-called "scramble" for Africa occurred
a. between 1815 and 1850.
b. during the French Revolution.
c. between the 1880s and 1900.
d. in the 1500s.
e. in the 1600s.
3. Woodrow Wilson's peace goals included all of the following except
a. punishment of Germany for starting the war.
b. open covenants of peace instead of secret diplomacy.
c. reduction of national armaments.
d. self-determination.
e. a general association of nation to guarantee territorial integrity.
4. The Suez Canal is in what nation?
a. Panama.
b. Italy.
c. Germany.
d. Egypt.
e. Great Britain.
5. Economically, colonies were important in
a. providing markets for manufacturing items produced in the mother
country.
b. producing manufactured goods to be sold in the mother country.
c. providing soldiers for the colonial armies.
d. purchasing raw materials from the mother country.
e. investing financial resources in the mother country.
In: Economics