Water management infrastructure by installing new pipes

Assignment Help Financial Management

Reference no: EM131850122

1. A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 1 million dollars and the annual maintenance cost is $16000. Every 20 years, the system needs to be fully examined which requires a fixed management and material cost of $12000 and a variable labor cost at the rate of $20/hr. 5 full time (working 8 hours per day) workers will be employed for 40 days for this task. If the infrastructure has a life time of 100 years and the city's interest rate is 12%, what is the capitalized worth of the project.

b. A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 1 million dollars and the annual maintenance cost is $16000. Every 20 years, the system needs to be fully examined which requires a fixed management and material cost of $12000 and a variable labor cost at the rate of $20/hr. 5 full time (working 8 hours per day) workers will be employed for 40 days for this task. If the infrastructure has a life time of 100 years and the city's interest rate is 12%, what is the EUAC of the infrastructure?

Reference no: EM131850122

Questions Cloud

Simple interest on its savings account balances : First City Bank pays 7.5 percent simple interest on its savings account balances, whereas Second City Bank pays 7.5 percent interest compounded annually.

Statistical sampling techniques to audit sampling : CPAs may decide to apply nonstatistical or statistical sampling techniques to audit sampling

Capital budget-calculate profitability index of investment : Capital Budgeting-Calculate the Payback Period for the investment in years and months. Calculate the Profitability Index of this investment.

Binomial option pricing model homework : Binomial Option Pricing Model Homework-Demonstrate the portfolio return at the end of each of two time periods with appropriate rebalancing of the portfolio.

Water management infrastructure by installing new pipes : A city plans to upgrade its storm water management infrastructure by installing new pipes. what is the capitalized worth of the project.

Instead of using traditional injection-mold techniques : use these printers to produce small and medium products for customers, instead of using traditional injection-mold techniques.

Discuss the relationship between the spot and forward rate : Discuss the relationship between the spot and forward rate. What is the difference between the futures market and the Forward market?

What happens to market-clearing equilibrium interest rate : What happens to market-clearing equilibrium interest rate when expected inflation increases? Why?

What should price of euros be on six-month forward contract : The exchange rate between US dollars and Euros is currently $1.18/€. What should the price of Euros be on a six-month forward contract?

User Account

All Pages