4. Power to a remote transmitting station is provided by a Diesel-electricgenerator unit. The original cost of the unit is P66,000. It costs P2,500 to shipthe unit to the job site. An additional cost of P3,500 was incurred for installation.[a] Determine the annual depreciation cost by the straight line method, if the unithas an expected life of 11 years. The salvage value of the unit at the end of its lifewas estimated at P5,500. [b] Determine the annual depreciation cost by thesinking fund method. Assume that the annual charge of depreciation wasdeposited in a fund drawing compound interest at the rate of 5%.Co - C.[(4+0L -1]Dn = d [(1+l)" -1]iCn =Co - Dn

Original Cost = 66,000 shipping Cost = 2,500 Installation Cost = 3,500 Salvage Value = 5,500 time =…

Answered: 4. Power to a remote transmitting…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Cacho Ventures Corporation purchased a factory machine of Php 51,000 on January 1, 2015. The machine's expected salvage value of Php 6,000 at the end of its 5-year useful life. During the useful life, the machine is expected to be used for 5,000 hours. The machine was used as under: Hours Used 1,200 Years 2015 2016 800 2017 1,150 2018 850 2019 1,000 Prepare Schedule of Depreciation on the basis of following methods: • Units of Output Method Sum of Year Digit Method
One year ago, your company purchased a machine used in manufacturing for $105,000. You have learned that a new machine is available that offers many advantages and you can purchase it for $160,000 today. It will be depreciated on a straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin (revenues minus operating expenses other than depreciation) of $60,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $21,000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, and has no salvage value, so depreciation expense for the current machine is $9,545 per year. The market value today of the current machine is $65,000. Your company's tax rate is 40%, and the opportunity cost of capital for this type of equipment is 10%. Should your company replace its year-old machine? The NPV of replacing the year-old machine is $ (Round to the…
An asset costing P50,000 has a life expectancy of 6 years and a estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed percentage method. O P7,144.2 O P5,263.86 O P3,878.4 P5,465.75 OP5,865.75
A machine costing P45.000 is estimated to have a salvage value of P4,350 when retired attheendof6 years. Whatis the annual rate of depreciation in %ousing the constant percentage of declining book value.
Can you please show me how to do these parts on excel? I have included the solutions to the parts, but I need to see how it is done with the formulas/equations on Excel, so I can fully understand what is going on. Thank you in advance!
An industrial plant bought a generator set for P90,000. Other expenses including installation amounted to P10,000. 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 using the (a) declining balance method (b) double declining balance method (c) sinking fund method at 12% interest
Hyundai USA has numerous robotic welders as well as robotic checkers with vision. One underbody robotic welder costing $1,200,000 (7-year property class) was installed and is increasing productivity by 2.5% in one area. The result is a savings of $500,000 per year. Deductible expenses other than depreciation and interest associated with the installed robotic welder are only $120,000. Hyundai borrowed $550,000 at 11% for 5 years. They plan to keep the welder for 8 years. Hyundai’s income-tax rate is 25% and their MARR is 9% after taxes. Determine the PW, IRR, for the investment if: The loan is paid back using Plan 3 Plan 3—make equal principal-plus-interest end-of-period payments.
Twelve years ago, an industrial facility bought a boring machine for P65,000. The estimated life of this machine is25 years and a depreciation reserve had been placed based on this. The price of the latest model is P125,000 andthe facility owner wants to replace the machine with this latest model. The old unit can be sold for P18,000. Howmuch new capital will be required for the purchase?
You purchased a molding machine at a cost of $88,000. It has an estimateduseful life of 12 years with a salvage value of $8,000. Determine the following·:(a) The amount of annual depreciation computed by the straight-line method.(b) The amount of depreciation for the third year computed by using the double-declining-balance method.
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
A new barcode reading device has an installed cost basis of $24,160 and an estimated service life of eight years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset. a. What will the depreciation charge be in year eight? b. What is the book value at the end of year seven? c. What is the gain (or loss) on the disposal of the device if it is sold for $3,400 after seven years?

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