3. A machine shop purchased 12 years ago a milling machine for P68,000. Astraight line depreciation reserve had been provided on a 25 year life of themachine. The owner of the machine shop desires to replace the old millingmachine with a modern unit of many advantages costing P110,000. It can sellthe old unit for P25,000. How much new capital will be required for thepurchase?

Besides physical resources, such as production plants, capital can also include financial assets,…

Answered: 3. A machine shop purchased 12 years…

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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An equipment costing P250,00o0 has an estimated life of 15 years with a book value of P30,000 at the end of period. Compute the depreciation charge and its book value after 10 years using sinking fund method assumingi = 8% d = P8,102.50; BV = P103,333.33 O d= P8,102.50; BV = P132,622.60 d = P6,686.67; BV = P125,666.67 d = P7,567.50; BV = P138,567.60
How long will it take for $7000 to double at the rate of 8%?
The ABC company is considering constructing a plant to manufacture a proposed new product. The land costs P15,000,000, the building costs P30,000,000, the equipment costs P12,500,000, and P5,000,000 working capital is required. At the end of 12 years, the land can be sold for P25,000,000, the building for P12,000,000, the equipment forP250,000 and all of the working capital recovered. The annual disbursements for labor, materials, and all other expenses are estimated to cost P23,750,000. If the company requires a minimum return of 25%, what should be the minimum annual sales for 12 years to justify the investment?
A company is considering buying a new piece of machinery. The initial cost of the machine is 80,000 and its salvage value is 20,000 at the end of 20 years. Annual operating cost is 18,000. What is the equivalent uniform annual cost of the machine based on 10% interest rate?
6. A company that makes self-clinching fasteners expects to purchase new production-line equipment in 3 years. If the new units will cost Php18M, how much should the company set aside each year, if the account earns 10% per year? A Php7.24M B Php59.58M Php44.76M D Php5.44M
An industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P 10,000. The generator set is to have a life of 17 years with a salvage value at the end of life of P5,000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by the following method. a) Double Declining Balance Method b) SYD method
35 of 35 Estimating Cost And Valuation Save Calculate the annual percentage depreciation of a machine using the constant percentage method, if purchasing cost is Rs. 12,000 and scrap value is Rs. 3,000 and the life of the machine is 8 years.
A civil engineer bought a crane for erecting tall buildings. It was invoiced from Japan (Cost,Insurance, freight) to Manila ay P 60, 000. Brokerage, custom’s, permits and etc. total P 120,000. At the end of10 years, he expects to sell it for P 70,000. Tabulate and determine the depreciation charge during the 4th year andthe book value at the end of 6th year(show solution at these years) using the following: Show solutions for the first 2 yrs
1. An equipment which costs P 150,000.00 is purchased by a contractor. It is said to have a useful life of 5 years and has a salvage value of P20,000.00. Determine the depreciation and book value for each of the 5 years using the Straight Line Method. Year 0 1 2 3 4 5 Book Value P 0.00 Depreciation per year P 0.00 Book Value at the end of the Year ℗ 150,000.00
1. A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using the following methodology? a. Sum of the Years Digit Method. BV5=₱25,454.55b. Sum of the Years Digit Method. BV4 = P 78,750.00Note: Provide solution since the answers are already shown and include the cash flow diagram. Please use manual solution and not excel solutions.
2. A backhoe loader is purchased with an amount of P 2,800,000.00 by a contractor. The manufacturer explained that the said equipment has an estimated 10 years of useful life and a salvage value of P 125,000.00. Determine its depreciation and book value for each year using the Straight Line Method. Year 0 1 2 3 4 5 6 7 8 Book Value P 0.00 Depreciation per year ℗ 0.00 Book Value at the end of the Year $ 2,800,000.00

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