#360.
A mechanical engineer is faced with the prospect of fluctuating future budget due to the country's economic condition for the maintenance of a particular machine During each of the five years P1000 year will be budgeted. During the second five years the annual budget will be P1,500 per year. In addition, P3,500 will be budgeted for an overhaul at the end of eight year. The mechanical engineer wonders what uniform annual expenditures would be equivalent to these fluctuating amounts assuming compound interest at 6% per annum. Compute the equivalent uniform annual expenditures for the 10 years period.
A
P2,765.78
B
P1,999.60
C
P1,512.20
D
P2,134.54
Answer: P1,512.20
#361.
The maintenance expense on a piece of machinery is estimated as follows. Maintenance for the 1st year is P150, and increases by P150 every year until the fourth year. If interest is 8%, find the equivalent uniform annual maintenance cost
A
P360.59
B
P342.58
C
P421.46
D
P520.42
Answer: P360.59
#362.
A manufacturer purchased a computer worth P15,000 with a useful life of 6 years and salvage value of P2,000 at the end of its life. Assuming rate of interest to be 12%, compute the equivalent uniform annual cost.
A
P3401.93
B
P3526.42
C
P3348.92
D
P2986.46
Answer: P3401.93
#363.
The initial cost of a machine is P80,000 with a salvage value of P20,000 at the end of 20 years. The annual operating cost of the machine is equal to P18,000. If money is worth 10%, compute the equivalent uniform annual cost for the machine.
A
P329,230.30
B
P230,271.28
C
P269,730.40
D
P329,465.20
Answer: P230,271.28
#364.
Given two lathe machines A and B has initial cost of P55,000 and P75,000 respectively. If the total annual costs of A and B are P16,200 and P12,450 respectively, at what service life do these two machines have the same uniform annual cost if money is worth 10% per annum.
A
5
B
6
C
7
D
8
Answer: 8
#365.
A businessman bought P30,000 worth of equivalent with a useful life of 8 years and a P5000 salvage value at the end of 8 years. Assuming 6% interest rate, compute the equivalent uniform annual cost.
A
P4,325.90
B
P3,684.40
C
P5,162.86
D
P6,143.42
Answer: P4,325.90
#366.
Compute the equivalent uniform annual cost of the machine having the following data:
Initial cost = P100,000
Salvage value = P20,000
Useful life = 20 years R
ate of interest = 12%
Annual operating cost = P15,000
A
P28,110.30
B
P26,472.40
C
P25,473.60
D
P24,146.90
Answer: P28,110.30
#367.
A machine has an initial cost of P80,000 with a useful life of 20 years. Annual operating cost is P18,000. Assuming money is worth 10% per annum, compute the salvage value at the end of 20 years if the equivalent uniform annual cost of the machine is P26,959.27
A
P25,000
B
P21,000
C
P22,000
D
P23,000
Answer: P25,000
#368.
Given the two machines A and B having initial costs of P55,000 and P75,000 respectively. The total annual costs of A are P16,200 while that of B is P12450. If money is worth 10% annually, at what service life do these two machines have the same equivalent uniform annual costs?
A
8
B
10
C
6
D
9
Answer: 8
#369.
A shipping firm has determined two brands of paints to be used in each maintenance Brand A costs P450 per gallon and brand R costs P220 per gallon. Brand B is expected to prevent rust for 5 years. Both paints costs P400 of labor per gallon to apply and both cover the same area. If money is worth 12%, how long must brand A prevent rust to justify its use?
A
8
B
5
C
6
D
7
Answer: 8
#370.
A spare part of an engine, operating in a corrosive atmosphere costs P4,000 installed and lost for 4 years. If the same spare parts are treated for corrosion resistance it will cost P8,000 installed. How long must the treated part last to be as good an investment as the untreated part if money is worth 6%.
A
9.23 years
B
8.62 years
C
10.23 years
D
16.23 years
Answer: 9.23 years
#371.
A series of year and payments extending over eight years are as follows: P10.000 for the first year, P20.000 for the second year, P50,000 for the third year, and P40,000 for each year from the fourth through the 8th year. Find the equivalent annual worth of these payments if the annual interest is 8%.
A
P44,800.00
B
P30,563.00
C
P35,650.00
D
P33,563.85
Answer: P33,563.85
#372.
A man loans P187.400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 yrs. Find the annual payments.
A
P44,982.04
B
P56,143.03
C
P62,334.62
D
P38,236.04
Answer: P44,982.04
#373.
A house and lot can be acquired a down payment of P500,000.00 and a yearly payment of P100,000.00 at the end of each year for a period of 10 years, starting at the end of 5 years from the date of purchase. If money is worth 14% compounded annually, what is the cash price of the property?
A
P810,100.84
B
P808,835.92
C
P801,900.20
D
P805,902.68
Answer: P808,835.92
#374.
A parent on the day the child is born wishes to determine what lump sum would have to be paid into an account annually, in order to withdraw P20,000.00 each on the child's 18th, 19th, 20th and 21st birthdays:
A
P35,941.73
B
P33,941.73
C
P30,941.73
D
P25,941.73
Answer: P30,941.73
#375.
A man borrowed P300,000 from a lending institution which will be paid after 10 yrs. at an interest rate of 12% compounded annually. If money is worth 8% per annum how much should he deposit to a bank monthly in order to discharge his debt 10 yrs. hence?
A
P2,798.52
B
P3,952.50
C
P4,672.31
D
P5,091.92
Answer: P5,091.92
#376.
In five years, P18,000 will be needed to pay for a building renovation. In order to generate this sum, a sinking fund consisting of three annual payments is established now. For tax purposes, no further payments will be made after three years. What payments are necessary if money is worth 15% per annum?
A
P2,870
B
P3,919
C
P5,100
D
P2,670
Answer: P3,919
#377.
A father wishes to provide P4,000 for his son on his 21st birthday. How much should he deposit every 6 months in a savings bank which pays 3% converted semi-annually, if the first deposit is made when the son is 3-year-old?
A
P63.22
B
P65.20
C
P63.90
D
P67.88
Answer: P63.22
#378.
A group of Filipino Mechanical Engineers formed a corporation and the opportunity to invest P8,000,000 in either of the two situations. The first is to expand a domestic operation. It is estimated that this investment would return a net year end cash flow of P2,000,000 each year for 10 years and at the end of that time the physical assets, which would no longer be needed, could be sold for P5,000.000. alternative opportunity would involve building and operating a plant in a foreign country. This operation would involve no net cash flow during the first 3 years, but it is believed that, beginning with the end of the fourth year, an annual flow of P4,000,000 would be received, running through the end of the tenth year. After that time, it is believed that the operation and facilities might be expropriated, with little, if any, compensation, being paid. Which investment, if either, would you the recommend?
A
Domestic Operation
B
International Operation
C
None of the above
D
Both Domestic and International Operation
Answer: Domestic Operation
#379.
XYZ Inc. plans to construct and additional building at the end of 10 years for an estimated cost of P5,000,000.00 accumulate this amount it will have equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P8,000,000.00. What should be the annual deposit for the last 5 years?