A Cooling Tower initially costs P16,450 and has a salvage value of P880 at the end of its economic life of 7 years. Assume interest rate of 0.068 annually, determine its book value at the end of the year 3. Use four (4) decimal places.
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- A resistor has a selling price of P 400. It it’s selling price is expected to decline at a certain rate of 10% per annum due to obsolescence, what will be it’s selling price after 5 years?Problem 1: An equipment costs 7X,000 QAR and has an estimated salvage value of IX,000 QAR at the end of 5 years of useful life. Calculate: (a) The book value at the end of year 3 by the straight-line method. (b) The book value at the end of year 3 by DDB method.A Cooling Tower initially costs P 18,023 and has a salvage value of P 897 at the end of its economic life of 8 years. Assume interest rate of 0.052 annually, determine its book value at the end of the year 5. **Use four (4) decimal places
- A logistics company is budgeting for its fuel usage for the next 4 years. Current fuel costs are $350,000 per year; it believes that fuel costs will rise 6% per year due to inflation over the next four years. Assuming the logistics company uses a a 16% combined return on investment, what would be the present worth of its fuel costs for years 1-4? Click here to access the TVM Factor Table calculator. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ± $10.An engineer bought an equipment for 500,000. He spent an additional amount of 35,000 for installation and other expenses. The estimated useful life of the equipment is 10 years. The salvage value is x% of the first cost. Using the straight line method of depreciation, the book value at the end of 5 years will be 291,500. What is the value of x? Draw the cashflow if necessaryFink Co. is interested in purchasing a new business vehicle. The vehicle costs $50,000 and will generate constant-dollar delivery revenue of $25,000 (year 0 dollars) for each of the next 6 years. At the end of the 6 years, the vehicle will have a salvage value of $4,000. The tax rate is 21%, and annual inflation is 5%. Assuming that the vehicle is depreciated using MACRS (5-year property class) and that Fink Co. uses an after-tax real interest MARR of 7%, compute the PW, and determine whether Fink Co. should purchase the new business vehicle. This is all that was given
- Mang Danny bought a piece of equipment for P1,000,000. He spent an additional amount of P300,000 for installation and other expenses. The salvage value is 15% of the first cost. If the book value at the end of 7 years will be P333,125 using SLM, compute the useful life of the equipment in years. Add your answerA machine cost P7350 has asalvage value of P 350at the end of the useful life of 8 years. Determine the book value at the end of 4 years using the Matheson's formula.Ramsis is a heavy equipment rental company. It is considering the purchase of Tower crane at a price of BD 775,000. This crane is expected to operate for 12 years before retirement with no salvage value at the end. The company is planning to rent the crane for BD 108.000 per year starting year 2 and the rental inereases by 10% thereafter. Cost of this maintenance is expected to be BD 15,000 cach year. a) What is the discounted payback period, if the MARR is 8% per year? b) In your engineering analysis study, which method would you select (Payback or Preseut worth) to solhve this problem? And why?
- 3. The cost of equipment is P 600,000 and the cost of installation is P 47,000. If the salvage value is 10% of the cost of equipment at the end of 5 years. Determine the book value at the end of the fourth year using straight-line method.A certain newly created company installed a 10,000 KW electric generating plant at a cost of P430 per kW. The amount of the total cost of the plant was sold to the public and were to mature in 15 years. The salvage value is conservatively set at 5% of the first cost, interest bond is 4% and on sinking fund deposit is 3½% What is the sinking fund accumulation after 10 years?Fink Co. is interested in purchasing a new business vehicle. The vehicle costs $50,000 and will generate constant-dollar delivery revenue of $20,000 (year O dollars) for each of the next 6 years. At the end of the 6 years, the vehicle will have a salvage value of $5,000. The tax rate is 21%, and annual inflation is 3%. Assuming that the vehicle is depreciated using MACRS (5-year property class) and that Fink Co. uses an after-tax real interest MARR of 8%, compute the PW, and determine whether Fink Co. should purchase the new business vehicle. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. LA