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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Your future company has purchased a machine and has entered into a contract that requires the company to pay $2000 each year for the upgrade of machine components at the end of years 6, 7, and 8. In anticipation of the upgrade cost, your company has decided to deposit equal amounts ( X ) at the end of each year for five years in a row in an account that pays i = 6% . The first deposit is made at the end of the first year. What is the value of X?
A manufacturer produces certain items at a labor cost of P115 each, material cost of P76 each and variable cost of P2.32 each. If the item has a unit price of P600, how many units must be manufactured each month for the manufacturer to breakeven if the monthly overhead is P428,000?
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
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
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. 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.
A mechanical engineer bought an equipment for $500,000.00 and the same has an economic life of 5 years, and with a salvage value of $100,000.00. Construct a depreciation table. What was the depreciation during 5th yr and the book value at the end of 5th year? Explain your answer. (Use double declining balance method).
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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