A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using Sinking Fund Method if i=9% Answer: BV5=₱50,456.44 Show Solution
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A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using Sinking Fund Method if i=9%
Answer: BV5=₱50,456.44
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- A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $36,000, an operating cost of $4000, and a salvage value of $15,000 after 3 years. A Ford model will have a first cost of $32,000, an operating cost of $3100, and also have a $15,000 resale value, but after 4 years. (a) At an interest rate of 15% per year, which model should the consulting firm buy? Conduct an annual worth analysis. (b) What are the PW values for each vehicle? 10 16 -22)A large standby electricity generator in a hospital operating room has a first cost of $71,750 and may be used for a maximum of 6 years. Its salvage value, which decreases by 15% per year, is described by the equation S-71,750(1- 0.15), where n is the number of years after purchase. The operating cost of the generator will be constant at $9,250 per year, and the interest rate is 12% per year. Determine the economic service life and associated AW values. The economic service life is years and the AW value is $-A delivery car had a first cost of $34,000, an annual operating cost of $15,000, and an estimated $5000 salvage value after its 6-year life. Due to an economic slowdown, the car will be retained for only 4 years and must be sold now as a used vehicle. At an interest rate of 12% per year, what must the market value of the used vehicle be in order for its AW value to be the same as the AW if it had been kept for its full life cycle? The market value of the used vehicle is determined to be $ 26423
- 17) A professional photographer who specializes in wedding-related activities paid $24,800 for equipment that has a $2,000 estimated salvage value after five years. He estimates that his operating costs associated with hosting an event amount to $50 per day. If he charges $300 per day for his services, how many days (rounded up to the next integer) per year must he be employed in order to break even at an interest rate of 10% per year? (*Seawater contains 2.1 pounds of magnesium per ton. By using the processingmethod A, 85% of the metal can be recovered at a cost of 3.25 per ton of water pumped andprocessed. If process B is used, 70% of the available metal is recovered, at a cost of only 2.60per ton of water pumped and processed. The two processes are substantially equal as toinvestment costs and time requirements. (a) If the extracted metal can be sold for 2.40 perpound, which processing method should be used? (b) At what selling price for the metal wouldbe two processes be equally economical?Answer with complete solution brief explanation. Thank you.Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (ie.. low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 10% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-190,000 $-55,000 $4,000 2 years The present worth for the DDM method is $ The present worth for the LS method is $ The LS method is selected. LS $-430,000 $-25,000 $39,000 4 years
- PEFORMING ROR ANALYSIS FOR 3D PRINTER AND IIOT TECHNOLOGY Background Software used in 3D printer systems manufactured by Spectrum LASER Corp. is currently able to automatically develop hollows, shells, and "tree supports to save development time. Network printing for use on multiple machines and at different locations globally is available. New software, called JIT II, is being beta tested that will allow lloT-type (Industrial Internet of Things) connections between machines at distant locations. When onb oard monitoring sensors detect that a part is about to fail, or it is time to replace one of several high-profile parts, the JIT Il software will automatically queue the part's manufacturing code onto a 3D printer that is detected to be locally idle or ready. The company believes it can design and produce the JIT Il software, the 3D printers, and the accompanying computer equipment necessary to place this technology in a wide variety of harsh environments-chemically toxic to humans,…Determine the ESL, at i = 15% per year for equipment that has a first cost of $8,000 and the estimated operating costs and year-end salvage values shown below Year Operation Cost Salvage Value $ per Year $ 1 -1000 2 -1200 3 -1300 4 -2100 1 year 2 years 3 years 4 years 6000 5000 3000 2000A textile processing company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it with a proprietary oxypure process. The relevant information for each process is shown. Use an interest rate of 15% per year to perform the replacement study. Additionally, write the PMT functions that display the information necessary to make the decision. Process Current Oxypure Original cost 6 years ago, $ 450,000 — Investment cost now, $ — 600,000 Current market value, $ 25,000 — Annual operating cost, $/year 190,000 70,000 Remaining life, years 3 10 Salvage value, $ 0 50,000
- The local bank pays 4% interest on savings deposits. In a nearby town, the bank pays 1% per quarter. A man who has $3000 to deposit wonders whether the higher interest paid in the nearby town justifies driving there What sum of money now is equivalent to $8250 two years hence, if interest is 4% per 6-month period? The answer is closest to: Hint : 4% per 6 month means semi annual periods so the n does not equal 2 anymore ! $8,923 $7,052 $8,580 $9,651Matchim's Paving is investing in a new wider paving machine that will cost $131000, which is expected to return $22500 per year of the next 12 years. At the end of the 12 years the paving machine is expected to have a salvage value of $20000. Assuming the cash flow is at the end of the year, what is the Pay Back Period, in years, for the project?1. Two methods can be used for producing expansion anchors. Method A costs $70,000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $30,000 per year. Method B will have a first cost of $135,000, an operating cost of $8,000 per year, and a $40,000 salvage value after its 3-year life. At the MARR of 12% per year, which method should be used on the basis of a present worth analysis?
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