A computer, printer, and copier were purchased for a total price of Php 250,000 on August 1, 2013. The company estimated that the equipment purchased will be effectively used for 5 years and after that, the equipment can be sold for Php20,000.
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- A firm can purchase a centrifugal separator (5-year MACRS property) for $22,000. The estimated salvage value is $4,000 after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be $2,200. These O&M costs are projected to increase by $1,000 per year each year thereafter. The income tax rate is 24% and the MARR is 11% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis? CAN YOU DO THIS PROBLEM BY HAND? AND NOT USING EXCEL I WOULD REALLY APPRECIATE IT!!!!Aasim Corporation has an opportunity to invest in a machine to manufacture soft drinks for period of five years. The price of the machine is Tk. 500,000 and its economic life is eight years. The machine is expected to be sold at the end of project life (after five years) of the machine for tk. 140,000. The machine will be depreciated by the straight-line methods for eight years. The machine will produce 20,000 units of soft drinks each year. The selling price of each unit soft drink is tk. 20 and the production cost is tk. 7 per unit during the project life. The corporate Tax rate is 30% in each economic year. The company has already spent tk. 80,000 for the feasibility study of the project and initial working capital investment tk. 25000 recoverable at the end of the project. The company plans for 30% debt financing issuing 13%bond, and remaining will be equity financing. The company is listed in Chittagong Stock Exchange (CSE) and the outstanding shares of the company are trading at…Hardware Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $4,900,000 to buy the machine and $100,000 to have it delivered and installed. The machine is expected to work for five years and raise gross profits by $4,730,000 per year, starting at the end of the first year. Other general expenses associated with using the machine are estimated at $950 thousand for each of those years. The machine will be depreciated over five years using the straight-line method. The marginal tax rate is 40%. What are the incremental free cash flows associated with the new machine in year 0 of the project? Assume the machine is purchased in year 0 and starts depreciating in year 1 of the project.
- The management of Jasper Equipment Company is planning to purchase a new milling machine that will cost $160,000 installed. The old milling machine has been fully depreciated but can be sold for $15,000. The new machine will be depreciated on a straight-line basis over its 10-year economic life to an estimated salvage value of $10,000. If this milling machine will save Jasper $20,000 a year in production expenses, what are the annual net cash flows associated with the purchase of this machine? Assume a marginal tax rate of 40 percent. a. $15,000 b. $27,000 c. $21,000 d. $18,000A machine’s first cost is $60,000 with salvage values over the next 5 years of are $50K, $40K, $32K, $25K, and $12K. The annual operating and maintenance costs are the same every year. Determine the machine total cost.Nguyen Inc. is considering the purchase of a new computer system (ICX) for $140,000. The system will require an additional $20,000 for installation. If the new computer is purchased it will replace an old system that has been fully depreciated. The new system will be depreciated over a period of 8 years using straight-line depreciation. If the ICX is purchased, the old system will be sold for $20,000. The ICX system, which has a useful life of 8 years, is expected to increase revenues by $31,000 per year over its useful life. Operating costs are expected to decrease by $3,000 per year over the life of the system. The firm is taxed at a 40 percent marginal rate. Round your answers to the nearest dollar. A. what investment is required to acquire the ICX system and replace the old system? B. compute the annual net cash flows associated with the purchase of the ICX system.
- Cullumber Lumber, is considering purchasing a new wood saw that costs $40,000. The saw will generate revenues of $100,000 per year for five yearsThe cost of materials and labor needed to generate these revenues will total $60,000 per yearand other cash expenses will be $10,000 per year. The machine is expected to sell for $2.000 at the end of its fiveyear life and will be depreciated on a straight-line basis over five years to zeroCullumber's tax rate is 26 percentand its opportunity cost of capital is 14.20 percent. What is the project's NPV(Do not round intermediate calculationsRound final answer to decimal places, e.g. 5,275)A paper company paid $4,00,000 at the start of a project to clear an area of land and plant some young pine trees. The trees will mature in 10 years, at that time what will be the value of forest? If these costs will be incurred for plantation and clear the land i) They required $20,000 at the start of every year for medicine and spray for the land. ii) Salariesof the gardeners' $10,000 paid at the end of each year What should be the value of the forest if interest rate is 15%? Required: What should be the value of the forest if interest rate is 15%?ABC company is evaluating two alternatives: the purchase of an automatic feed machine and a manual feed machine for a finishing process. The auto-feed machine has an initial cost of Php23,000, an estimated salvage value of Php4,000, and a predicted life of 10 years. One person will operate the machine at a rate of Php24 per hour. The expected output is 8 tons per hour. Annual maintenance and operating cost is expected to be Php3,500. The alternative manual feed machine has a first cost of Php8,000, no expected salvage value, a 5-year life, and an output of 6 tons per hour. However, three workers will be required at Php12 per hour each. The machine will have an annual maintenance and operation cost of Php1,500. All projects are expected to generate a return of 10% per year. How many tons per year must be finished in order to justify the higher purchase cost of the auto-feed machine?Please write legibly with complete & detailed solution
- Mikayla Bhd is a company that produces fresh pineapple juice. During the year, the company bought two machines to assist in producing pineapple juice. Machine A was purchased in 2 January 2021 with a cost of RM600,000. The machine is expected to be used for ten years with RM9,000 scrap value. Machine B was bought in 10 August 2021 with a cost of RM819,000. The expected useful life of Machine B is five years. Machine A is depreciated based on yearly basis and Machine B is depreciated based on monthly basis. It is the company’s policy to depreciate assets using the Straight-Line Method. Calculate the depreciation value of Machine A and Machine B for the year ended 2021.A company that sells has proposed to a small public utility company that it purchase a small electronics computer for ₱1,000,000 to replace ten calculating machines and their operators. An annual service maintenance contract for the computer will be provided at a cost of ₱100, 000 per year. One operator will be required at a salary of ₱110, 000 per year and one programmer at a salary of ₱160, 000. The estimated economical life of the computer is 10 years. The calculating machines costs ₱8,000 each when new, 5 years ago, and presently can be sold for ₱2,000 each. They have an estimated life of 8 years and an expected ultimate trade in value of ₱1, 000 each. Each calculating machine operator receives ₱85, 000 per year. Fringe Benefits for all labour cost 8% of annual salary. Annual maintenance cost on the calculating machine has been ₱500 each. Taxes and insurance on all equipment is 2% of the first cost per year. If capital costs the company about 25%, would you recommend the computer…Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $280,000 and to have a five-year life and no salvage value. It will be depreciated on a straight-line basis. Business Solutions expects to sell 100 units of the equipment’s product each year. The expected annual income related to this equipment follows. Sales $ 385,000 Costs Materials, labor, and overhead (except depreciation) 193,000 Depreciation on new equipment 56,000 Selling and administrative expenses 32,000 Total costs and expenses 281,000 Pretax income 104,000 Income taxes (30%) 31,200 Net income $ 72,800 Required: (1) Compute the payback period. (2) Compute the accounting rate of return for this equipment.