A company bought an electrical equipment worth Php 235,000 with useful life of 10 years. What are the book values of the asset at the end of year if the equipment has a salvage value of Php 15,000 using: a. Straight Line Method b. Sinking Fund Method at 12% interest rate c. Declining Balance Method d. Double Declining Balance Method Sum-of-the-Year's-Digit Method

A company bought an electrical equipment worth Php 235,000 with useful life of 10 years. What are the book values of the asset at the end of year if the equipment has a salvage value of Php 15,000 using: a. Straight Line Method b. Sinking Fund Method at 12% interest rate c. Declining Balance Method d. Double Declining Balance Method Sum-of-the-Year's-Digit Method

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

4. Maintenance costs for a small bridge with an expected 60-year life are estimated to be $1,000 each year for the first five years, followed by a $10,000 expenditure in the 15th year a $10,000 expenditure in year thirty. If i = 10% per year, what is the equivalent uniform annual cost over the entire 60-year-period?
3.1) A company purchases a new printing press and determines the following cash items: Initial cost = R500 000 Annual revenue = R100 000 Annual maintenance = R50 000 Printing drum overhaul in year 4 = R100 000 Salvage value at the end of year 5 = R80 000 3.1.1) Sketch the cash flow diagram. 3.1.2) Determine the cash flow for end of year 3. 3.1.3) Determine in which year/s will a negative cash flow be experienced.
A5.
An electronics firm is planning to manutacture a new handheid gaming device tor the preteen market The data have been estimated tor the product Assuming a negligible market (salvage) value tor the equipment at the end of tive years, determine the breakeven annual sales volume for this product. E Click the icon to view the data estimated for the product A Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. The breakeven annual sales volume is 5000 units. (Round to the nearest whole number) More Info Sales price $12.50 per unit Equipment cost Ovorhoad cost Operating and maintenance cost Production lime per 1,000 units Study period (planning horizon) $200,000 $50.000 per yoar $25 per operating hour 100 hours 5 years 15% per year MARR
4. Use Word's Equation Editor to solve the general version of the perfect * and ₂* for complements problem. In other words, find ₁ ** max U = min{ax,, bx,} X1.12 s.t. m = P₁x₁ + P₂₂
Please handwriten solution
ENG. ECONOMY 1. Consider the following problem, How much must be paid on the due date June 26, 2010, on a loan of Php. 35,000.00 made on December 26, 1989 with interest rate of 4 ½ % converted semi annually 2. Create two alternative plans using the data from the 1st problem this time it will be annually. • a. Plan 1: A principal payment of Php. 2,000 and interest every period. • b. Plan 2: Pay the principal and interest in one payment at the end of the year. • c. Explain which of the plan will be the best option for the borrower, will the borrower have equal basis if choose any of the payment options
Littrell's Nursery needs a new irrigation system. System one will cost $145,000, have annual maintenance costs of $10,000, and need an overhaul at the end of year six costing $30,000. System two will have first year maintenance costs of $5,000 with increases of $500 each year thereafter. System two would not require an overhaul. Both systems will have no salvage value after 12 years. If Littrell's cost of capital is 4%, using annual worth analysis determine the maximum Littrell's should be willing to pay for system two.
Q2/ A-A company purchased a series of markets 100 million $, five years ago. There was a net loss of 15 million $ at the end of year 1, of ownership. Net cash flow is increasing with an arithmetic gradient of +7 million $ per year starting the second year, and this pattern is expected to continue for the foreseeable future. That means that breakeven net cash flow was achieved this year. Because of the heavy debt financing used to purchase series of markets, the international board of directors expects MARR of 30% per year from any sale. a-An investor has just been offered 200 million $ by another company. Use FW analyses to determine if the MARR will be realized at this selling price. b-If the company continues to own the series of markets, what selling price must be obtained at the end of 8th years of ownership to make the MARK ?
Find term of a loan whose proceeds and maturity value are PHP 56,225 and PHP 65,000, respectively. The discount interest rate applied is 6%.
If you borrow money from Ms. Cruz at 15% simple interest rate, determine the future value of Php 38969 which is due at the end of 15 months. Note: Final answer round to the nearest whole number.
3. The Department of Public Works and Highways (DPWH) awarded two contracts worth a combined Php55M to improve (i.e., deepen) a retention basin and reconstruct the spillway that was severely damaged in a flood 2 years ago. The DPWH said that, because of the weak economy, the bids came in Php48M lower than engineers expected. If the projects are assumed to have a 20-year life, what is the annual worth of the savings at an interest rate of 6% per year? A Php25.83k B Php4.18M Php1.30M D Php82.83k