What is the total cost of using the grader today

Assignment Help Financial Management

Reference no: EM131023240

A 5 meter blade width grader with 300 HP cost $1 million and has an operating life of 35,000 hrs. Total operating cost for using this grader is $100 per hours. The grader will operate 5,000 hours per year. The interest rate is assumed at 10% . Construct the cash flow diagram. What is the total cost of using the grader today?

Reference no: EM131023240

Questions Cloud

The account immediately after you make the first withdrawal : To complete your last year in business school and then go through law school, you will need $10,000 per year for 4 years, starting next year (that is you will need to withdraw the first $10,000 one year from today). How much will be in the account im..

At what rate was energy consumption changing in 2008 : A restaurant has an annual demand for 900 bottles of a California wine. It costs $1 to store one bottle for one year, and it costs $5 to place a reorder. Find the number of orders that should be placed annually.

What is price deflation : In the same article, Ambrose Evans-Pritchard, a writer for the London-based newspaper The Telegraph, is quoted as saying: "Deflation has ... insidious traits. It causes shoppers to hold back. Once this psychology gains a grip, it can gradually se..

Calculate the cost of issuing preferred shares : The Bradbury Breathe Easy Company needs to raise additional funds to build the new air purification systems factory. Their corporate bylaws suggest a mix of 50% debt, 5% preferred stock and 45% common stock. The company is in the 35% tax bracket. The..

What is the total cost of using the grader today : A 5 meter blade width grader with 300 HP cost $1 million and has an operating life of 35,000 hrs. Total operating cost for using this grader is $100 per hours. The grader will operate 5,000 hours per year. The interest rate is assumed at 10% . Constr..

How would this action pump money into the financial system : An article on Bloomberg.com reported in 2012 that the People's Bank of China "cut the amount of cash that banks must set aside as reserves for the third time in six months, pumping money into the financial system to support lending after data show..

Define the general contracts and general scope of work : Define the following terms: General Contracts · General scope of work · Contract Intent · Contract Indication · Reasonable review · Patent errors · Change clause(order) · Pass-through clause Contract Bonds and Insurance · Bid Bond · Performance Bond ..

Use the percent of sales method : Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's inventory. Make the following assumptions: current year's sales are $27,800,000; current year's cost of goods sold is $17,528,00..

User Account

All Pages