7-11. Your company has purchaseda large newtruck-tractor for over-the-road use (asset class 00.26).costing $15,000, the cost basis for depreciation purposesIt has a cost basis of $180,000. With additional optionsis $195,000. Its MV at the end of five years is estimatedas $40,000. Assume it will be depreciated under theGDS: (7.4)a. What is the cumulative depreciation through the endof year three?b. What is the MACRS depreciation in the fourth year?c. What is the BV at the end of year two?

Part a: Cumulative Depreciation through the End of Year ThreeUnder MACRS, the 5-year property has…

Answered: 7-11. Your company has purchased a…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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3. A machine is purchased for S70,000. Life is 10 years with a S10,000 salvage. MARR is 10 and the tax rate is 50%. Cash operating costs are $4500 per year. Five year MACRS (20, 32, 19.2, 11.52, 11.52,5.76) depreciation will be used. Calculate the annual equivalent revenue requirements for this machine.
You are evaluating two different silicon wafer milling machines. The Techron | costs $264,000, has a 3-year life, and has pretax operating costs of $71,000 per year. The Techron Il costs $460,000, has a 5-year life, and has pretax operating costs of $44,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $48,000. If your tax rate is 22 percent and your discount rate is 12 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) > Answer is complete but not entirely correct. Techron I $ -134,840.83 Techron II $ -107,570.18
A generator costing P750,000 depreciates in value each year by 20% of its value. Find its book value when the generator is 5 years old using DBM. a. P190,500 b. P750,000 c. P150,000 d. P245,760
Give typing answer with explanation and conclusion
1) Margaret has invested in a project that will cost $17000 upfront and will provide annual revenue of $5700 each year for 10 years. If the interest rate is 15% calculate the present worth of this project. Round your answer to two decimal places. 2) An asset cost $26000 with a salvage value of 2500 after 10 years. Assuming straight line depreciation, calculate the book value in year 4. Round your answer to the nearest dollar. please do both questions
1. A company purchases an asset for P10,000 and plans to keep it for 20 years. If the salvage value is zero at the end of 20th year. What is the depreciation in the 3rd year using the SYD method? (10 Points) 937 1,000 747 857
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45-46
A new shoe production line is being designed at a cost of $245,000 and operating costs areexpected to be $84,000 per year. Planned annual production is 2500 pairs and the price of a pair ofshoes is $110. The line's service life is 14 years, the depreciation rate is 25%. Use a 19% annual interestrate for the base case. Using the interval [-20%, -10%, +10%, +20%], perform a present worthsensitivity analysis using a sensitivity graph with respect to the following variables in terms of theirimpact on the Present worth.a) First Costb) Operative costc) Annual Productiond) Salvage Value
A contractor imported a bulldozer paying P350k to the manufacturer, freight & insurance charges amounted to P18k, permits & other exp P25k. If the contractor estimates the life of the bulldozer to be 15 years with salvage value of P30k, determine the Total depreciation at the end of 11 years using Sinking fund at 10%. a. P112,718.231 b. P121,718.231 c. P111,718.231 d. P211,718.231
Consider the case of apiece of equipment costing $ 20000 and the scrap value $2000. the service life is estimated to be 5 years. Determine the asset value at the end of the first years, and the second years ? H. W at the end of 3d, 4th, 5th years. determine the depreciation cost
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