A company invested an amount of $85,000 to implement a project, and the expected receipts from this project during the 5 years were as follows: End the year 1 $10,000 | (العائدات) Receipts | 2 $25,000 3 $35,000 $45,000 5 $30,000 Find I.R.R. and determine if the project is desirable or not If the MARR was 16%? Q: An investor bought a factory for an amount of $10 million, the estimated useful life is 40 years and the estimated salvage value is $1 million, the factory's annual revenues are $500,000. Use the Sum years' digits method and Straight line method to find: a) Annual depreciation charge at the end of the 25th year b) Total depreciation charge at the end of the 25th year c) Book value at the end of the 25th year

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
5th Edition
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
Section: Chapter Questions
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A company invested an amount of $85,000 to implement a project, and the expected
receipts from this project during the 5 years were as follows:
End the year
1
$10,000 | (العائدات) Receipts |
2
$25,000
3
$35,000
$45,000
5
$30,000
Find I.R.R. and determine if the project is desirable or not If the MARR was 16%?
Q: An investor bought a factory for an amount of $10 million, the estimated useful life is
40 years and the estimated salvage value is $1 million, the factory's annual revenues are
$500,000.
Use the Sum years' digits method and Straight line method to find:
a) Annual depreciation charge at the end of the 25th year
b) Total depreciation charge at the end of the 25th year
c) Book value at the end of the 25th year
Transcribed Image Text:A company invested an amount of $85,000 to implement a project, and the expected receipts from this project during the 5 years were as follows: End the year 1 $10,000 | (العائدات) Receipts | 2 $25,000 3 $35,000 $45,000 5 $30,000 Find I.R.R. and determine if the project is desirable or not If the MARR was 16%? Q: An investor bought a factory for an amount of $10 million, the estimated useful life is 40 years and the estimated salvage value is $1 million, the factory's annual revenues are $500,000. Use the Sum years' digits method and Straight line method to find: a) Annual depreciation charge at the end of the 25th year b) Total depreciation charge at the end of the 25th year c) Book value at the end of the 25th year
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