Capitalized cost sample problems with solutions pdf

# Capitalized cost sample problems with solutions pdf
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a. At an interest rate of 8% per year, the capitalized cost of the dam is nearest to? n A=iP,Key points to remember n Time value of money $ today is not the same as $ The cash flows (costs, revenues, and savings) in a capitalized cost calculation are usually of two types: recurring, also called periodic, and nonrecurring. a P, c. P3,, b. An annual operating cost Sample-Problems-for-Capitalized-CostFree download as Word Doc.doc /.docx), PDF File.pdf), Text File.txt) or read online for free. P2,,,d. NOTA SOLUTION: Capitalized Cost = (,/)()Capitalized Cost = PP2,, A machine that has a five year life has a first cost of $50,, an operating cost of $4, per month and a $10, salvage value. Cc takes into account the initial cost, annual operating costs, periodic repair/maintenance costs Solution Capitalized Cost = PW of Cost for an infinite time period. The document provides examples of calculating the capitalized cost (Cc) of various assets and projects. aRs cRs. bRs dRs.) A dam will have a first cost of P5,,, an annual maintenance cost of P25, and mirror reconstruction costs of P, every five years. EAC =, + [10,(F/A, 8%, 3) +,](A/F, 8%, 6) = $41, For n = ∞, P = A/I Capitalized Cost = 1,, + (41,/) = $1,, The answer is b. At an interest rate of% per year compounded monthly, the capitalized cost of the machine is nearest to: A) $17, B) $, C) $, D) $, Find out the capitalized cost of the alternative if interest rate is% per year. At an interest rate of% per year compounded CAPITALIZED COST The present worth of a project with an infinite life is known as the capitalized cost. Capitalized cost is the amount of money at t =needed to The capitalized cost method of comparison is particularly suited to constructions such as bridges which are often viewed as never to be replaced, simply to be built and Capitalized cost problem n P=25, n A=? n r=5% n i=? If money is worth 8%, determine the capitalized cost of all future maintenance. A machine that has a five year life has a first cost of $50,, an operating cost of $4, per month and a $10, salvage value. First compute the Equivalent Annual Cost of the maintenance. For its maintenance, a bridge in NLEX requires P, at the end ofyears and annually thereafter.