Handbook of Civil Engineering Calculations

TABLE 2 Salvage value Annual operating Year at end, $ cost, $ 0 12,000 1 8,000 4,700 2 5,000 5,200 3 4,000 5,800 4 3,500 6,600 5 ...

the corresponding annual cost is $8502. Since this is less than the annual cost of the new machine ($9400), the existing machine ...

TABLE 5 Operating cost Excess operating cost Year for 1 -year life, $ for 8-year life, $ 1 12,000 O 2 11,400 1,600 3 10,800 3,80 ...

of the machine, and an obsolescence cost, which results from the development of an im- proved model. For example, at the end of ...

Determine whether the existing machine should be retired now Since the cost of retaining the machine for 1 additional year ($44 ...

Calculation Procedure: Compute the required replacement capital Replacement capital = $56,000(1.07) 3 (1.09) 2 = $56,000(1.225) ...

ent costs. Where extraordinary payments occur, simply add the present worth of these payments, as was done in the present case w ...

ENDOWMENT WITH ALLOWANCE FOR INFLATION An endowment fund is to provide perpetual annual payments to a research institute. The fi ...

ENDOWMENT WITH ALLOWANCE FOR INFLATION An endowment fund is to provide perpetual annual payments to a research institute. The fi ...

After weighing the risks involved, the firm decides that the minimum acceptable rate of return on project A is 10 percent; on pr ...

VALUATION OF CORPORATE BONDS A $10,000,4 percent corporation bond paying semiannual dividends is redeemable at 102 at the end of ...

This interpolation gives i = 2.42 percent per semiannual period, or 4.84 percent per an- num compounded semiannually. INVESTMENT ...

Calculation Procedure: L/st the annual dividends obtainable The table below shows the dividend that can be expected under plan ...

determine which of the points, A to H, is most distant from line OJ. Do this by scaling the vertical offsets or by drawing lines ...

which has a vertical offset of $500. Therefore, the firm should allocate $4000 to plan A and $4000 to plan B. Related Calculatio ...

TABLE 8. Combinations of Plans A and B with Total Investment of $600,000 (multiply all values in table by 1000) Individual inves ...

TABLE 10. Combinations of Plans A, B, and C (multiply all values in table by 1000) Individual investment, $ Combination of plans ...

Calculation Procedure: Establish a basis of comparison for the investments To establish a basis of comparison, assume that each ...

APPARENT RATES OF RETURN ONA CONTINUING INVESTMENT A firm leasing construction equipment purchased an asset for $24,000, chargin ...

TRUE RATE OF RETURN ON A COMPLETED INVESTMENT Refer to the previous calculation procedure. What was the actual after-tax rate of ...