A machine was bought 3 years ago for $20,000. SL depreciation has been used with B=$20,000, N=4years, S=$0. A replacement is been considered. A new machine can be bought for $16,000 to replace the old one. DDB depreciation will be used for the new machine with B=$16,000, N=4 years, S=$0. The new machine will be used for 2 years and then can be sold for $12,000. The new machine will save $5,000/yr in operation cost. The old machine can be sold for $4,000 right now, or kept in use for 2 more years and then will be sold for $1,000. Incremental combined tax rate is 50%, after-tax MARR is 10%. Calculate ∆PW of the replacement

Q: A company paid $200,000 for a machine to make a new product. The machine has a 5 year life and a…

A:

Q: A company that manufactures pulse Doppler insertion flow meters uses the Straight Line method for…

A: Depreciation is the allocation of the cost of a tangible asset over its useful life. In other words,…

Q: Type of Equipment: Office furniture Purchase price = $2400 Useful life = 10 years Estimated salvage…

A: Double Declining Balance Method: This is the method of depreciating the asset and under this method,…

Q: Required information Halcrow Yolles purchased equipment for new highway construction in Manitoba,…

A: Step 1Step 2Step 3 Step 4

Q: For the first to use calculate the

A:

Q: A machine has a first cost of P113,222.48 and has an expected salvage value after 10 years…

A: Machines and equipment lose some of their value over time due to wear and tear. Depreciation…

Q: 12. A video-recording system was purchased 3 years ago at a cost of $39,000. A 5-year recovery…

A: The double declining balance method (DDB) describes an approach to accounting for the depreciation…

Q: A company purchased new mining equipment in year 2018 by paying $400,000 cash. The company plans to…

A: To calculate the book value of the asset at the end of year 2, you would subtract the total…

Q: Evaluate and select the best purchase of the following vehicles using straight line depreciation, a…

A: * SOLUTION :-

Q: Complete the table.

A: Given cost of tractor = 24,680 $ Time = 12 years Salvage = 2600 $ Depreciation under straight line…

Q: condensing unit was bought at 50,000 having a useful life of 5 years and a salvage value of 10,000,…

A: Straight line premise is a technique for computing depreciation and amortization, the most common…

Q: Show manual solutions and depreciation schedule/table.  An equipment costing P250,000 has an…

A: The declining balance method is a sped-up deterioration process for recording bigger devaluation…

Q: How does the tax depreciation method allow the firms to benefit from the tax advantages of…

A: Depreciation is an expense which is deducted from the value of the asset. There are certain tax…

Q: sing the double declining balance depreciation method for an asset purchased at the start of 1019…

A: Cost of Asset 85000 Salvage Value 2500 Life of Asset 12

Q: A molen machine was purchased at 41000 and has an estimated economic life of 5 years with a salvage…

A: Depreciation is a lessening in the value of an asset over the long haul because of mileage, outdated…