Maintenance costs for an industrial system

Assignment Help Business Economics

Reference no: EM13818356

Maintenance costs for an industrial system are expected to be as follows:

a) Minimal - years 1 and 2

b) $120,000 – in yr 3

c) Increasing by $20,000 per year, for year 4 through year 7

d) Remaining constant at the year 7 amount for the rest of the 10-year life of the system

Assume replacement at 10 year intervals with similar systems. If MARR = 12%, what is the annual equivalent maintenance cost?

Reference no: EM13818356

Questions Cloud

Calculate straight-line depreciation : Calculate straight-line depreciation and calculate operating cash flows - estimated project cash flows be changed to reflect these interest charges

Global operations and supply chain management focuses : Much of global operations and supply chain management focuses on process while viewing the human role as secondary. This is very misleading. Advanced software and other tools are very important; however, they are support tools.

Homeland security and terrorism : Homeland Security and Terrorism

Characteristics of common stock-preferred stock-bonds : Please write a minimum 1000 word paper that describes the characteristics of common stock, preferred stock and bonds. Second discuss the pros and cons of common stock, preferred stock and bonds from the perspective of an issuer.

Maintenance costs for an industrial system : Maintenance costs for an industrial system are expected to be as follows:

Operating and maintenance costs are estimated : An independent trucker purchases a fancy new over-the-road rig for $220,000. The expected lifetime is 12 years, and the salvage value estimated at that time is $85,000. Operating and Maintenance costs are estimated at $75,000 per year, and his annual..

Source of temporary cash is trade credit : An important source of temporary cash is trade credit, which does not actually bring in cash, but instead slows its outflow. Vendors often provide discounts for early payment. What is the formula to determine the effective interest rate if the dis..

What is evidence-based practice : Discuss the 3 areas of concern and how these can affect accreditation and/or financial status of the organization. What is evidence-based practice? How can evidence-based practice approaches be used to improve health care outcomes

What are the implications of managing quality at delta : What are the implications of managing quality at Delta. Has that quality lapse damaged Delta in the marketplace

User Account

All Pages