A copier costs $4,500 and has an estimated life of 4 years. A deluxe version of the copier is supposed to last 6 years. If money is worth 3.5%, how much is the deluxe version worth? ($6,528.17) Cannot use Excel

A copier costs $4,500 and has an estimated life of 4 years. A deluxe version of the copier is supposed to last 6 years. If money is worth 3.5%, how much is the deluxe version worth? ($6,528.17) Cannot use Excel

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 3 After researching the cost of a shredder for your online business, you settle on a more expensive…

A: Step 1: List the details based on the problem: Amount: $1,399Date: August 22Payment on: September…

Q: Our new computer system cost us $164,800. We will outgrow it in five years. When we sell it, we will…

A: A computer is considered an asset for a business since it adds economic value to the company's…

Q: 2

A: The time period required for an investment to recuperate the amount expended for making such…

Q: 26. Fitness, Inc. is advertising a new exercise machine for $1999.99. They will finance the purchase…

A: To calculate the interest paid on financing the exercise machine, we can use the formula for…

Q: The "Fly By Night" Used Car Lot uses the following to illustrate their 11.8% finance plan on a car…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Kinky Copies may buy a high-volume copier. The machine costs $100,000 and this cost can be fully…

A: Cost of machine$1,00,000Estimated life 5Salvage value$30,000Cost savings per year$20,000Increase in…

Q: person bought laptop for $ 10k . Seven years from now the salvage value is $ 500 . Other costs…

A: Present worth of asset is Present value of all cash inflow less present value of of all cash out…

Q: The cash price of a washing machine is RO 495. Hilal pays RO 25 down and makes 20 payments of 26 RO…

A: The correct option is D. 10.63% Please see the next step for the solution

Q: Our new computer system cost us $114,400. We will outgrow it in five years. When we sell it, we will…

A: The after tax proceeds from the asset can be found by using following formula:The book value at the…

Q: Falk Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine…

A: Continue or replace is one of the decision making analysis that is used by the cost and management…

Q: find annual profit. That is, find annual profit for each of these combinations of charge per copy…

A: Fixed Costs are those costs which remain fixed irrespective of the level of activity. Variable Cost…

Q: A new transmission in your truck will cost $9500. Luckily it should reduce maintenance expense by $…

A: Net Present Value (NPV) is the present value of cash inflows minus the initial investment. If NPV of…

Q: You bought a second-hand Nike pair of shoes for P2500, expecting that you could still use it for…

A: Sunk Cost: Sunk Cost refers to the cost or loss that has to be incurred irrespective of whether we…

Q: A concrete roof system costs $490,000 with annual maintenance of $4,000 and a life expectancy of 30…

A: Discount Rate = 6% Cost Structure: Cash Flows Year Cash Outflow - Concrete Roof System 1…

Q: What will be your monthly car payment if you are purchasing a car for $25,000 and you have $2,000…

A: In the mortgage amortization concept, the monthly payments are calculated by taking the monthly…

Q: Two alternatives can be used to solve a repeatedly valve failure problem. A) Use new valves from…

A: By calculating the present value of an investment's predicted cash flows less the original cost of…

Q: Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV…

A: Free cash flow refers to the cash that is generated by the company after considering all the cash…

Q: By purchasing training software for $8,000, you can eliminate other training costs of $3,675 each…

A: NPV is the difference between present value of cash inflows and initial cost. It should be positive…

Q: The a

A: Tax refers to the mandatory charge levied by the government over the income gained by an entity.

Q: You are trying to determine whether you should purchase a new or used car. The new car costs $40,000…

A: NPV(Net Present Value) is excess of PV of inflows over initial outlay of proposal. It is calculated…

Q: A new transmission in your truck will cost $9500. Luckily it should reduce maintenance expense by $…

A: Given Data: Year Cash Flows131502315033150431505315063150731508315093150103150Initial…

Q: new machine that will check f tal revenues, including cost sav There is no salvage value. Wha

A: Accounting rate of return is the simple method capital budgeting in which annual profit is divided…

Q: A company pays a sales representative 0.50 $ per kilometer in return for using its own car for…

A: In this problem we have to calculate present value of all costs and find out equivalent annual cost.

Q: lifetime value

A: Meaning of customer life time value: Customer life time value is the present value of all future…

Q: Which car to buy? Mr. Fox is a taxi company owner. He is going to buy a new car. Cars M, C, R suite…

A: The objective of the question is to determine which car Mr. Fox should buy based on the total costs…

Q: Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV…

A: Free cash flow refers to the cash that is generated by the company after considering all the cash…

Q: to make a down paymer Jay is going to pay the рay I a. How How

A: Maturity value refers to the sum value of money an entity that has borrowed a loan needs to pay when…

Q: Hollywood Tabloid needs a new state-of-the-art camera to produce its monthly magazine. The company…

A: Present value:The present value is a financial concept that represents the current worth of a…

Q: A samsung phone costs 45,000 with a useful life of 6 years. If it has a scrap value of 4,350 what is…

A: The formula for an annual rate of depreciation using the declining balance method is: 1-SCn×100…

Q: 4 ebook Print References Camera 2 costs $5,200. It will also last for eight years and have…

A: The problem case focuses on calculating the present value of cameras and identifying the best camera…

Q: John Doe uses a sawing machine to make furniture. The market value of this machine and operati cost…

A: The cost incurred as a result of using an extra input to produce an additional unit of output is…

Q: Target is offering no payments for 3 years on the purchase of kitchen appliances. You decide to set…

A: Data given: Total cost of new appliances = $6250 N=3 years Working Note#1 Calculation of period:…

Q: An automatic device costs Php30,000 and is projected to generate savings of Php11,837.50 annually.…

A: The payback period will be calculated in order to find out the total amount of time which will be…

Q: Our new computer system cost us $132,400. We will outgrow it in five years. When we sell it, we will…

A: CCA stands for Capital Cost Allowance and refers to the method of depreciation which is used for tax…

Q: $8000 will cost now for installing a printing machine, but it will save $2200/year for 5 years. The…

A: The concept of money's time worth indicates that any sum of money today is more as compared to its…

Q: Bike the Bay Tours has a van that is getting old. They are considering replacing the van with a new…

A: Total savings = Decrease in operating cost *no of years =(5000-3000)*3=6000

Q: 5) A device is purchased for $10,000. It yields a $2,000 yearly net profit for first 4 years and…

A: 2000 for 4 years 1000 for 4 years Required rate =10%

Q: 1. A local restaurant is considering one of two pizza delivery truck (Truck A and Truck B) to…

A: i=interest rate n= number of years

Q: Car A initially costs $500 more than Car B, but it consumes 0.04 gallon/mile versus 0.05 gallon/mile…

A: Information Provided: Car A cost initially = $500 + Car B initial cost Consumption for Car A = 0.04…

Q: Suppose you want to buy a new car that costs $32,900. You have no cash-only your old car, which is…

A: Any sum borrowed to meet personal or business needs is regarded as a loan amount. The loan amount…

Q: Our new computer system cost us $172,000. We will outgrow it in five years. When we sell it, we will…

A: Capital cost allowance -The Canadian Tax permits an annual deduction known as the capital cost…

Q: A tech company still focuses on a relatively small geography, but deliveries have increased, so the…

A: In case of not payable it is not an instalment payment where principal is paid equally Not…

Question

Expert Solution

Step 1

Formula:

Actual price = [ Copier cost / ( 100 - 3.5 % ) ] x 100

To know the actual cost copier cost to be divided with 100 - money worth percent.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

es A forklift will last for only 4 more years. It costs $6,900 a year to maintain. For $24,000 you can buy a new lift that can last for 12 years and should require maintenance costs of only $3,900 a year. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 5% per year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Should you replace the forklift? b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 13% per year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Should you replace the forklift? a-1. Equivalent cost a-2. Should you replace the forklift? b-1. Equivalent cost b-2. Should you replace the forklift?
not use ai please
Econo-Cool air conditioners cost $380 to purchase, result in electricity bills of $166 per year, and last for 5 years. Luxury Air models cost $580, result in electricity bills of $132 per year, and last for 8 years. The discount rate is 20%. a. What is the equivalent annual cost of the Econo-Cool model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
A person is planning to purchase a car. A new car is costing rupees 3 lacs. The resale value of the car at the end of the year is 85% of the previous year. Maintenance and repair cost during the first year are rupees 10000 and they increase by 15 % every year. The minimum resale value of the car can be rupees 75000. (a) When should the car be replaced to minimize average annual cost? (b) If interest rate of 12% is assumed, calculate the average cost at the end of 10 years.
Our new computer system cost us $121,600. We will outgrow it in five years. When we sell it, we will probably get only 10% of the purchase price. CCA on the computer will be calculated at a 30% rate (Class 10). Calculate the CCA and UCC values for five years. (Round your intermediate calculations and final answers to 2 decimal places. Omit $ sign in your response.) Year 1 2 3 4 5 CCA $ Ending UCC $ $ $ What will be the after-tax proceeds from the sale assuming the asset pool remains open? Assume a 40% tax rate. (Omit $ sign in your response.) After-tax proceeds $
3. A used car M costs $4,900.00 and operating costs are 11 cents per mile. At the end of 5 years you estimate its selling price to be $1,500.00. Another used car N costs $6,000.00 and operating costs are 9 cents per mile. At the end of 5 years you estimate the selling price to be $X. Assume you will be driving 15,000 miles per year. Determine the value of X so the two cars are equally worth to you at i=7%.
The company you work for just bought a robot priced at $40,000. This robot allowed for labor costs to be decreased by $15,000 for just the first year. This benefit was lowered by $1,500 for the following years. The robot will last 5 years. The interest rate is 6%. Give the present value of the robot. Show all formulas and work for solving.
A company is going to change all light bulbs of its buliding. The initial cost is 57000. all bulbs has been replaced at the same time. what if the bulbs have been replaced during 5 yrs period. Inflation rate is 3 percent. energy saving per yr is 6000 dollars. (compare replacement at the same time to the period of 5 yrs
1
The local electronics store is offering a promotion "1-year: same as cash," meaning that you can buy a TV now, and wait a year to pay (with no interest). So, if you take home a $1,200 TV today, you will owe them $1,200 in one year. If your bank is offering 4% interest, what is the true cost of the TV to you today? The true cost of the TV to you today is $ (Round to the nearest cent.)
You are in the process of getting a new car but are not sure if you should buy or lease. The total cost of the car is $21,000, and you have a $275 monthly spend budget for payments. If you lease the car, the terms of the lease will be forty-eight months at an APR of 2.25%. The residual value of the car is $8,000. If you buy the car, a bank will offer an APR of 2.70% and seven years to repay the loan. You are not required to make a down payment with either the lease or loan options, and payments are made at the end of the month for both options. Should you lease or buy the car given your budget limit of $275 a month? Create a new workbook that shows the difference between leasing and buying the car in terms of monthly payments.