EGMfe - 1 Maintenance expenditures for a structure with a...

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1 Maintenance expenditures for a structure with a twenty- year life will come as periodic outlays of $1,000 at the end of the fifth year, $2,000 at the end of the tenth year, and $3,500 at the end of the fifteenth year. With interest at 10%, what is the equivalent uniform annual cost of maintenance for the twenty-year period? A) $200 B) $262 C) $300 D) $325 2 An alumnus has given Michigan State University ten million dollars to build and operate a laboratory. Annual operating cost is estimated to be one hundred thousand dollars. The endowment will earn 6% interest. Assume an infinite life for the laboratory and determine how much money may be used for its construction. A) $5x10 6 B) $8.33x10 6 C) $8.72x10 6 D) $9.90xL0 6 3 An investment pays $6000 at the end of the first year, $4000 at the end of the second year, and $2000 at the end of the third year. Compute the present value of the investment if a 10% rate-of-return is required. A) $8333
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This note was uploaded on 04/07/2008 for the course EGM 320 taught by Professor Dr.kalim during the Spring '08 term at Wilkes.

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