Solution-Calculate annual lcc at an interest rate of seven

Calculate annual lcc at an interest rate of seven per year

Assignment Help Cost Accounting

Reference no: EM13881695

The Pentagon asked a defense contractor to estimate the life-cycle cost for a proposed light-duty support vehicle. The list of items included the following categories: R&D costs (R&D), nonrecurring investment costs (NRI), recurring upgrade costs (RU), scheduled and unscheduled maintenance costs (Maint), equipment usage costs (Equip), and phaseout_disposal costs (Po_D). Use the cost estimates (shown in $1 million) for the 20-year life cycle to calculate the annual LCC at an interest rate of 7% per year.

Year	R&D	NRI	RU	Maint	Equip	PoD
0	5.5	1.1
1	3.5
2	2.5
3	0.5	5	1	0.6	1.5
4		11	3	1.4	3.6
5		10.5	4.2	1.6	5.3
6-10			$7	2.7	7.8
11 on			2	3.5	8.5
18-20						2.7

2001_Case Flow Diagrams for Problem.png

Reference no: EM13881695

Questions Cloud

The company uses the straight line depreciation method : 1.On April 1, 2011, the KB Toy Company purchased equipment to be used in its manufacturing process.

Various color frequency and intensity values : Suppose the various color frequency and intensity values that comprise a color analysis are combined into a single numerical value, C, for a particular yellow dye. During a test period in which the reactor conditions are carefully controlled and t..

Expertise to assist with employee and patient satisfaction : Define the fundamental responsibilities and key characteristics of the Chief Information Officer (CIO) and Chief Technology Officer (CTO) within health care organizations. Make one (1) recommendation where they can utilize their expertise to assist w..

Compute depreciation expense on the building : Compute depreciation expense on the building, remaining machinery, and equipment for 2014.

Calculate annual lcc at an interest rate of seven per year : Use the cost estimates (shown in $1 million) for the 20-year life cycle to calculate the annual LCC at an interest rate of 7% per year.

What general conclusion do you draw : If in this situation you had assumed incorrectly that the two error variances are the same (say, equal to σ2), what would be the OLS estimator of β? And its variance? Compare these estimates with the estimates obtained by the method of WLS? What g..

U-learn university uses a c-chart to monitor student : U-learn University uses a c-chart to monitor student complaints per week. Complaints have been recorded over the past ten weeks. Develop 3-sigma control limits using the following data:

Case - the anti-hierarchy : Read three cases, and then write one paragraph to each case to talk about your opinions towards the case. Case 1- The Anti-Hierarchy and Case 2- Best Practices at Best Buy

What are the ad''s major claims? : What are the ad's major CLAIMS? What is the ad's EVIDENCE for each claim?

User Account

All Pages

Calculate annual lcc at an interest rate of seven per year

Reference no: EM13881695

Reference no: EM13881695

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT