A machine costs P8,000.00 and has an estimated life of 10 years with a salvage value of P500.00. What is its book value after 8 years using the straight-line method? O a. P2,000.00 O b. P2,400.00 O c. P2,200.00 O d. P2,050.00
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- A machine costing P 480,000 has a life expectancy of 12 years with a salvage value of 10% of the first cost. What is the book value after five years using declining balance method? О а. Р183,892 O b. P 152,758 О с. Р 214,785 O d. P 196,432The cost of equipment is P 500,000.00 and the cost of installation is P 30,000.00. 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. Use straight line method. O a. P146,000.00 O b. P142,000.00 O c. P146,010.00 O d. P156,000.00A certain operation is now performed by hand, the labor cost per unit is P 54 and annual fixed charge for tool use is P 10,000. A machine that is considered for this job will coast P 240,000, and have a salvage value of P 10,000 at the end of its 6 - year life. With it labor cost is P 22 per unit and annual fixed charge is P 20,000. At what number of units per year, at zero interest, will the cost of the two methods break even? Select one: a. 1,150 b. 1,105 c. 1,501 d. 1,510
- A certain operation is now performed by hand, the labor cost per unit is P 64 and annual fixed charge for tool use is P 10,000. A machine that is considered for this job will coast P 240,000, and have a salvage value of P 10,000 at the end of its 6 - year life. With it labor cost is P 22 per unit and annual fixed charge is P 20,000. At what number of units per year, at zero interest, will the cost of the two methods break even?Mr Roque bought an equipment which cost P524,000.00. Freight and installation costs him P31,000.00 If the life of the equipment is 15 years with an estimated salvage value of P120,000. What is the book value after 8 years using SLM. O P323,000 O P244,000 9,000 O P296,000 O P325,000The cost of Laboratory equipment is P 1,000,000.00 and the cost of installation and delivery charge is P 80,000.00. If the salvage value is 13% of the cost of equipment at the end of 5 years, determine the book value at the end of the third year. Use the straight-line method. O a. P432,708.00 O b. P432,780.00 O c. P423,078.00 O d. P432,078.00
- A company is looking to install a new automated system to increase its revenues by $24,000 per year over the next five years. Annual expanses of the system are expected to be $3,400. The system will cost $80,000 and have $5,000 salvage value at the end of the fifth year. If the MARR is 10%, what is the Annual Worth (AW). Select one: O a. $215 O b. $115 O C. $315 O d. $415An equipment costs 115,000 QAR and ha an estimated salvage value of 10,000 QAR at the end of 5 years of useful life. Calctlate: The book value at the end of year 5 by the MACRS method. O 6624 19008 O 103664 O 7538PLEASE WRITE YOUR SOLUTION ON A PAPER, THANK YOU A Contractor imported a bulldozer for his job, paying P 350,000 to the Manufacturer. Freight andInsurance charges amounted to P 18,000; customs’ broker’s fees and arrastre services, P 8,500;taxes, permits and other expenses, P 35,000. If the contractor estimates the life of the bulldozer tobe 10 years with a salvage value of P 20,000, determine the book value at the end of 8 years, a. using the Double Declining Balance Method. b. using the Declining Balance Method. c. using the Sinking Fund Method, i = 10% d. using the Sum of the Years Method
- Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity for the next 5 years. Normal operation costs $35,000 per year. The current crane will have no salvage value at the end of 5 more years. Allen can trade in the current crane for its market value of $40,000 toward the purchase of a new one, which costs $150,000. The new crane will cost only $8,000 per year under normal operating conditions and will have a salvage value of $55,000 after 5 years. If MARR is 20%, determine which option is preferred. a) Use cash flow approach (insider's viewpoint approach) b) Use the opportunity cost approach (outsider's viewpoint approach)uppose that you purchased a HVAC system five years ago for $75, 000. The O&Mcosts are $15, 000 this year and are expected to increase by $1, 000 each year for the next five yearsthen remain the same for the following years.The current salvage value of the system is $15, 000; salvage value after one year is estimated tobe $12, 000; after two years, $11, 000; after three years, $10, 000; after four years, $9, 000; and so on.A new industrial HVAC system is available for purchase at a price of $95, 000, including instal-lation. The market value of the new system will decrease at a rate of 15% each year. The O&Mcosts are expected to be $1, 000 in the first year, and will increase at a rate of 20% each year. Themaximum service life of the new system is 10 years. Assume that your company uses an interestrate of 10% for all project evaluations.(a) Find the remaining economic life of the currently owned asset.(b) What is the economic service life of the new system?(c) Use the…Show your complete solution. 19. A machine cost 7,350 has a life of 8 years and has a salvage value of 350 at the end of a years. Determine its book value at the end of 4 years using Constant- Percentage of Declining Value.