Determine the perpetual equivalent annual maintance cost

Assignment Help Financial Management

Reference no: EM13938026

An engineering company is working in coal mining operation has installed an in shaft monitoring system for oxygen tank and gear readiness for emergencies. Based on maintanence patterns for previous systems, costs are minimal for the first few years, increase for a time period, and then level off. Mantancence costs are expected to be $180,000 in year 3, and increase by 6% per year through year 6 and remain constant thereafter for the expected 10 year life of this system. If imular systems will replace the current one, determine the perpetual equivalent annual maintance cost at i=10% per year.

Reference no: EM13938026

Questions Cloud

Different organisational structures and cultures : Compare and contrast two different organisational structures and cultures. Explain how the relationship between an organisation‘s structure and culture can influence on the performance of the Asda's activities at this Irish site

What environment factor simultaneously limit photosynthesis : What environmental factors simultaneously limit photosynthesis? Explain the concept of saturation by applying conditions under which photosynthesis is not limited.

Prepare the adjustments made at december : Prepare the adjustments made at December 31, 2008 and 2009. Prepare the necessary journal entry to recognize 2009 interest to date and the first interest payment on January 31, 2009.

Provide a dram of the data collection instrument : How would you encourage participation in your research; who would be involved; and how would/could they be involved and what politics are likely to be involved when undertaking your research?

Determine the perpetual equivalent annual maintance cost : An engineering company is working in coal mining operation has installed an in shaft monitoring system for oxygen tank and gear readiness for emergencies. Based on maintanence patterns for previous systems, costs are minimal for the first few years, ..

What gain or loss is recognized in the accounting year : You are a hedger who takes a long position in an oil futures contract on November 1, 2009 to hedge an exposure on March 1, 2010. The initial futures price is $64. On December 31, 2009 the futures price is $63. On March 1, 2010 it is $69. The contract..

Debt-equity ratio-what is the value of the total assets : A firm has total debt of $1,540 and a debt-equity ratio of 0.39. What is the value of the total assets?

Percentage error between the true value : Show that the first four terms of the Maclaurin series expansion of y(x), where loge (y) = e x , are as follows: ¸ ¸ ¹ · ¨ ¨ © § ... 6 5 1 3 2 x y e x x [10] Calculate the percentage error between the true value of y and that derived from ..

Do you think it would affect other plant functions : What are some short-term and long-term advantages and disadvantages of genetically changing plant physiological processes, such as photosynthesis and metabolism? Do you think it would affect other plant functions? Explain your answer.

User Account

All Pages