26. A xerox machine cost of P120,000 after making800,000 photo copies the trade-in value of the xeroxmachine would be P20,000(Salvage value) after 10years. Using Declining Balance Method, find its bookvalue after producing 150,000 photo copies.

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Answered: 26. A xerox machine cost of P120,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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am. 214.
K Company has purchased a new machine costing $27,000 and the machine is expected to reduce the operating expenses by $7,000 every year. The useful life of machine is 5 years and the machine is expected to have a zero-scrap value at the end of its useful life. The company's required rate of return is 12%. Calculate the Net Present Value (NPV) of the machine. (Round intermediate calculations to 3 decimal places and final answer to the nearest dollar.) -$1,765 $1765 -$464 $25,235
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Janko Wellspring Incorporated has a pump with a book value of $26,000 and a four-year remaining life. A new, more efficient pump is available at a cost of $47,000. Janko can receive $8,200 for trading in the old pump. The old machine has variable manufacturing costs of $27,000 per year. The new pump will reduce variable costs by $11,100 per year over its four-year life. Should the pump be replaced? Multiple Choice No, because the company will be $5,600 worse off in total. Yes, because income will increase by $5.500 per year No, because income wit decrease by $100 per year. Yes, because income will increase by $5.600 in total No, Janko will record a loss of $16,400 r they replace the pump
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5. Magnum Electronics Company expects a demand of 20,000 units per year for a special-purpose component at the end of the next six years. Net return (profit) per unit is $4. To produce the component, Magnum must buy a machine costing $250,000 with a life of six years and a salvage value of $40,000 after six years. The company estimates that repair costs will be $20,000 per year during the beginning of Years 2 to 6. If Magnum requires a return of investment of 18%, should it market the component? Can only use BA 2 Plus Calculator
Suppose a machine has a current resale price of $6000 and an annual operating and maintenance cost of $2000. Each additional year thereafter, the operating and maintenance cost increases by five hundred and the resale value falls by thirty percent. The firm has a MARR of 9%. Using marginal analysis, find the cost of keeping the machine for its fourth year of service. The answer is with $20 of 4182 4222 4262 4302 4342
Use Service-Output Method. A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. Assuming that the total service of the machine is 1,497,600 hours and the number of working days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours? Answer: BV4 = P 78,750.00Show Solution
A xerox machine cost of P120,000 after making 800,000 photo copies the trade-in value of the xerox machine would be P20,000(Salvage value) after 10 years. Using Declining Balance Method, find its book value after producing 150,000 photo copies. P85,758.64 P78,979.78 P80,232.21 P89,538.49
k Rory Company has an old machine with a book value of $77,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $106,000. Rory can sell its old machine now for $73,000. The old machine has variable manufacturing costs of $32,000 per year. The new machine will reduce variable manufacturing costs by $12,800 per year over its five-year useful life. (a) Prepare a keep or replace analysis of income effects for the machines. (b) Should the old machine be replaced? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a keep or replace analysis of income effects for the machines. ces Keep or Replace Analysis Keep Revenues Sale of existing machine $ 0 Costs Purchase of new machine Variable manufacturing costs Income (loss) Replace Income Increase (Decrease) if replaced
Salty Nuts, Inc. must buy a new nut-shelling machine. The industrial engineer has collected the following information concerning the apparent best alternative. Calculate the net future worth of the alternative if the MARR is 6%.

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26. A xerox machine cost of P120,000 after making 800,000 photo copies the trade-in value of the xerox machine would be P20,000(Salvage value) after 10 years. Using Declining Balance Method, find its book value after producing 150,000 photo copies.