ECN 801 Midterm: CECN801 – W2013 Midterm2
Document Summary
First name ____________________________ Last name ____________________________ (as shown on blackboard) Student # ____________________________ Cecn801 midterm exam 2 : mark the correct answer on your scantron form. Hand in the scantron form and all other materials. Your answers on the scantron form are the ones being graded. Answers were rounded to the nearest dollar when within 10 cents of an integer. Annual receipts of ,000 are expected, annual maintenance and administrative costs will be ,000/year, and annual income taxes are . The machine generates net annual revenues of . The annual operating and maintenance expenses are estimated to be. At an interest rate of 12%, compute the (annualized) capitalized equivalent amount, The system will cost ,000 to design and build. It is estimated that it will have to re- worked every 15 years at a cost of ,000. Annual operating costs are expected to be ,000 for the first 12 years and ,000 a year thereafter.
