The writer is very fast, professional and responded to the review request fast also. Thank you.
A hospital has to evaluate a budget request for a new boiler room. The hospital’s engineer has stated that if he does not have a boiler room, then three additional maintenance men should have to be hired to maintain the present room for two shifts per day and the week ends. The average salary for a maintenance man is $750.00 per month. Presently, the maintenance and parts of the boiler cost $1,000.00 per month. A new boiler room with a new boiler is expected to cost $500,000.00 Its maintenance costs are expected to be $500.00 per month. The depreciable life of the new boiler is 20 years. The engineer estimates that at the longest, the present boiler would last 5 more years even with additional maintenance and would cost $550,000.00 to replace in 5 years. The old boiler still has $41,650.00 to be depreciated. If the new boiler is to be purchased, it will be purchased with cash.Required: Using the information above, calculate the net present value of costs (cash outflows) and decide whether it should be purchased in the budget year. Assume a 10 per cent cost of capital (discount rate).
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more