week 6 textbook questions ch 11-12

Engineering economy

Question 7 Smith's Computers is deciding whether to invest in prevention costs for its servers. Data regarding the decision between Investing or not is as follows: Cost of Equipment Working capital investment required Annual Activity Annual Sales (assume all cash) Annual Cash Expenses Repair Costs Depreciation Maintenance Supplies Retooling costs of equipment at Salvage value of equipment Life of project Year 6. Invest in Prevention $ 150,000 $ 35,000 $ $ $ $ $ $ $ $ 267,300 $ 165,000 11,250 $ 45,000 16,667 $ 30,000 $ 55,000 $ 65,000 3,000 9 $ Do Not Invest $ The working capital will be released for investment elsewhere at the end of the 9 years. Smith's Computers uses a 7% discount rate. (Ignore income taxes) Show all computations using the net present value format. Prepare separate computations for each project. Invest in Prevention

Exercise 8-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $14,000, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $280 discount. Transportation costs of $316 were paid by Rizio. The machine required mounting and power connections costing $968. Another $456 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $350 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded $ 0 0

Saved Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $34,560 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of. roblem 10-6A Part 3 Prepare journal entries to record the machine's disposal under each of the following separate assumptions: 1. Record the sale of the used machine for $21,000 cash. 2. Record the sale of the used machine for $84,000 cash. 3. Record the insurance settlement received of $31,500 resulting from the total destruction of the machine in a fire. View transaction list Journal entry…

Exercise 10-1 (Algo) Cost of plant assets LO C1 Rizio Company purchases a machine for $13,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $134 discount. Transportation costs of $303 were paid by Rizio. The machine required mounting and power connections costing $926. Another $437 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $320 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine.

Please answer last three requirement, If possible answer all the parts please other answer last 3 parts

Can someone please solve this

I need help completing a and b

Homework-Chapter 10 i 4 Saved Help Save & Exit Sull Check my wo 12.5 points A piece of newly purchased industrial equipment costs $1.325 million and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. Note: Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places e.g., 1,234,567.89. eBook Year Beginning Book Value Depreciation Ending Book Value Hint 1 $ 1,325,000.00 $ 189,342.50 $ 1,135,657.50 2 Print $ 1,135,657.50 $ 811,165.00 References 345 $ 811,165.00 $ 579,422.50 $ 579,422.50 $ 413,930.00 $ 413,930.00 $ 295,607.50 6 $ 295,607.50 $ 177,417.50 7 $ 177,417.50 $ 59,095.00 $ 59,095.00 0

Solve wi

10.38An international manufacturer of prepared food items needs 50,000,000 kWh of electrical energy a year, with a maximum demand of 10,000kW. The local utility company currently charges $0.085 per kWh-a rate considered high throughout the industry. Because the firm's power consumption is so large, its engineers are considering installing a 10,000-kW steam-turbine plant. Three types of plant have been proposed (units in thousands of dollars) and are given in Table P10.38 D

Answers for # 16 to 18

Chapter 9 Section 4 Problem 2 (09.04-PR002) - use MACRS-GDS 7 year property using excel to a answer the following. Michelin is considering going “lights out” in the mixing area of the business that operates 24/7. Currently, personnel with a loaded cost of $600,000 per year are used to manually weigh real rubber, synthetic rubber, carbon black, oils, and other components prior to manual insertion in a Banbary mixer that provides a homogeneous blend of rubber for making tires (rubber products). New technology is available that has the reliability and consistency desired to equal or exceed the quality of blend now achieved manually. It requires an investment of $2.5 million, with $110,000 per year operational costs and will replace all of the manual effort described above. The planning horizon is 8 years and there will be a $300,000 salvage value at that time for the new technology. The income-tax rate is 25% and the after-tax MARR is 10%. A. Determine the annual cost of purchasing the…

Exercise 10-2 (Static) Recording costs of assets LO C1 Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The company pays $33,500 to tear down an old building on the lot and $47,000 to fill and level the lot. It also pays construction costs of $1,452,200 for the new building and $87,800 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash. View transaction list Journal entry worksheet A Record the total costs of the plant assets. Note: Enter debits before credits. Transaction General Journal Debit Credit

PROBLEM 9.1A Determining the Cost of Plant Assets and Depreciation e L09-1, L LO9-2, LO9-3 Hamlet College recently purchased new computing equipment for its library. The following information refers to the purchase and installation of this equipment. 1. The list price of the equipment was $285,00o; however, Hamlet College qualified for an "education discount" of $25,000. It paid $50,000 cash for the equipment, and issued a three-month, 9 percent note payable for the remaining balance. The note, plus accrued interest charges of $4,500, was paid promptly at the note's maturity date. 2. In addition to the amounts described in 1, Hamlet paid sales taxes of $15,000 at the date of purchase. 3. Freight charges for delivery of the equipment totaled $1,000. 4. Installation costs related to the equipment amounted to $5,000. 5. During installation, one of the computer terminals was accidentally damaged by a library employee. It cost the college $500 to repair this damage. 6. As soon as the…

Please do not give solution in image format thanku

Chapter 10 Problem Set A Problem 10-1 On January 1, 2019 Crampton Company acquired land on which to construct a new distribution warehouse. During 2019, the company made expenditures as follows: Contract price of the land $600,000 Closing costs $23,000 Hoerr Excavating for clearing and grading $65,000 Sparks Concrete Construction for sidewalk and parking lot $158,500 Touchstone Lighting for parking lot lighting $21,500 J Hacker and Associates, Architects $71,000 Town of Normal for building permits $9,500 Lewis General Contractors $4,100,000 Crampton also purchased $1,450,000 of warehousing equipment and conveyors. The entire facility was placed in service before December 31, 2019. Prepare Crampton Company’s PPE section of their balance sheet dated December 31, 2019 before the adjusting entries for depreciation

A B 1 Chapter 14: Applying Excel 2 3 Data 4 Example E 5 Cost of equipment needed 340,000 6. Working capital needed 40,000 Overhaul of equipment in four years 30.000 7 Salvage value of the equipment in five years 20,000 Annual revenues and costs: 9 Sales revenues 400,000 10 Cost of goods sold 245.000 11 Out-of-pocket operating costs 65.000 12 Discount rate 10 % 13 a. What is the net present value of the project? (Negatlve amount should be Indlicated by a mlnus sign. Round your present value factor to 3 declmals and round all other Intermedlate calculatlons to nearest whole dollar.) Net present value c. The internal rate of return is between what two whole discount rates (e.g., between 10% and 11%. between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? The internal rate of return is between % and d. Reset the discount rate to 10%. Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive net present value? Minimum salvage…

lod X * CengageNOWv2 | On x 6 Cengage Learning B Milestone Two Guidel x G module 5 problem set x lrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=.. 向 еВBook Show Me How Units-of-activity Depreciation A truck acquired at a cost of $180,000 has an estimated residual value of $9,850, has an estimated useful life of 41,000 miles, was driven 3,300 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost (b) The depreciation rate per mile (c) The units-of-activity depreciation for the year Next Previous 33 Check My Work A O E O 11/2 56°F Mostly cloudy %23

MODULE 5 8-7 DISPOSAL OF ASSET Please read the problem below and provide the correct answer along with an explanation of the answer. Thank you! Dump It is selling a machine that no longer is large enough for the production requirements.  Dump It has had the machien for 3 years and has depreicated it using the straightline method.  Original cost had been $98,000 and salvage was estimated at $6000.  The machine has a life of 8 years. a) Journalize the sale of the imagine $70,000 b) Journalize teh sale of the machine for $50,000

1

Question 21 During year 4, King Company made the following expenditures relating to its plant building: Continuing and frequent repairs Repainted the plant building $40,000 10,000 Major improvements to the electrical wiring system 32,000 Partial replacement of roof tiles 14,000 How much should be charged to repair and maintenance expense in year 4? O $82,000 O $96,000 O $64,000 O$54,000

Sp

Chapter 11, Question 8

Need help with solving don't understand

föllowing Cost Factor Site B 170,000$ Site A Price of land 100,000S Monthly cost of delivering materials S 10,000 $ 7,000 Cost of equipment setup $ 12,000 $ 9,000 Cost of utilities per month $ 1,500 1,100 For site A, an extra $ 60/ day is needed for additional site guards. a- Which site should the contractor select? b- When do the costs of two sites are equals (After how many months of work the costs are similar)?

4

Please do not give solution in image format thanku

mework Assignment i es C CON Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Exercise 8-4 Straight-line depreciation LO P1 Esc Straight-Line Depreciation Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $47,500. The machine's useful life is estimated at 10 years, or 405,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 34,500 units of product. Determine the machine's second-year depreciation and year end book value under the straight-line method. Choose Numerator: / Cost minus salvage $ Year 2 Depreciation Year end book value (Year 2) F1 F2 40,500/ Estimated useful life (years) $ ✔ F3 Choose Denominator: # Dashboard F4J 10 4,050 Prev. F5 % = = E Paraphrasing Tool .... Annual Depreciation Expense 1 Depreciation expense $ Saved S 2 3 F6 G A C logitech 4,050 of 9 F7 & Excelsior…

Exercise 6-18A (Algo) Asset replacement decision LO 6-5 Tesla management are trying to decide whether to keep an older piece of machinery or buy a replacement. Management was presented with the following information to assist in their decision: • The old machine was purchased three years ago for $315,000 and has a current book value using straight-line depreciation of $185,000. • The old machine incurs operating expenses of $36,000 per year. • The current disposal value of the old machine is $83,000; if it is kept eleven more years, its remaining value would be $11,000. • The replacement machine would cost $229,000 and have a useful life of eleven years. • The replacement machine has an expected salvage value of $73,000 after eleven years. • The replacement machine would require $10,000 per year in operating expenses. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced? Keep Old Purchase New Machine Machine Total…