3.A machine was purchased for $8,000, with an estimated useful life of10 years, and it has a scrap value of $241,000 and rate of interest = %10.%3DCalculate the following:The book value at the end of theseventh year using sinking fundmethod. *O 3,833O4,8333,9333.

The value that remains with a company at the end of a specific period can be calculated using this…

A machine was purchased for $ 8,000, with an estimated useful life of 10 years, and it has a scrap value of $ 1,000 and rate of interest = %10. Calculate the following: The book value at the end of the seventh year using sinking fund method. 3,833 4,833 3,933

A machine was purchased for $ 8,000, with an estimated useful life of 10 years, and it has a scrap value of $ 1,000 and rate of interest = %10. Calculate the following: The book value at the end of the seventh year using sinking fund method. 3,833 4,833 3,933

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A company has already identified machine A and determined the economic life as four years by…

A: Table 1 summarises the specifications of machine B, as well as the standard calculations for…

Q: 14. An initial investment for a wholesale lumber supply company was $275,000. The income is $60,000…

A: Initial investment = $275,000 Income per year = $60,000 Expenses per year = $15,500 MARR= 10% We…

Q: A special welding machine is bought at Php 35,000.00. It has a salvage of Php 2,000.00 and an…

A: SYD stands for "Sum-of-the-Years'-Digits," which is a method used for calculating depreciation…

Q: Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards…

A: Present worth is a financial concept that refers to the value today of a future stream of cash…

Q: Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board…

A: Given information Year 0: Initial investment of $37,000 Year 1-7: Operating and maintenance expenses…

Q: IMSE 2710: Engineering Economic Analysis 3. A high-speed electronic assembly machine was purchased…

A: PW_1 > Defender PV

Q: Milwaukee Machine Tool is planning to buy a machine for S15,000 with a salvage value of 20% of the…

A: In this question we have, Milwaukee Machine Tool is planning to buy a machine for $15,000 which has…

Q: A $200,000 loan is to be repaid in equal yearly payments over 27 years at an interest rate of 3.5%…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The following table contains the summary of how a project's balance changes over its 5- year service…

A: NPV: It is the difference between the discounted cash inflows and cash outflows. If the NPV is…

Q: 1. Given: Assume i= 8.0% A new tractor costs $200,000. Annual O&M costs and salvage values are given…

A: Given information Initial cost 200000 i 8% Year Annual cost Salvage value 0 200000…

Q: Please view the following video before answering this question. Video Solution: 04.05-PR002 Click…

A: The present value of uniform series of cash flows can be represented by capitalized cost for each…

Q: Estate & Co trades in the vegetable and fruit farming business During the year ended 31 December…

A: Capital allowances can be claimed against the expenses made for procuring the required capital for…

Q: Chapter 10 - Suppose we have a company that is considering undertaking a project. The annual cash…

A: Present value (PV) can be calculated by using the following formula.

Q: Bell’s Amusements purchased an expensive ride for their theme and amusement park situated within a…

A: Given information Ride cost=$1.35 million=$1350000 Income =$420000 per year Operating…

Q: Engineering economy - ENGR 3322 A new municipal refuse-collection truck can be purchased for…

A: Cost of Truck = 84,000 life = 6 MV = 0 Receipt less Expenses per year = 18,000 MARR = 19%

Q: A businessman is considering the purchase of a machine that is expected to be obsolete in 5 years.…

A: Let's calculate the present worth of the incomes for each year: PW1=20,000/(1+0.15)1…

Q: • The recovery period of an asset in petroleum refineries plant is 16 years using the straight-line…

A: Recovery period for asset of petroleum refineries is 3 to 5 years.

Q: The sprayer's base price is $900,000, and it would cost another $21,000 to install it. The machine…

A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…

Q: A piece of equipment has a first cost of $175,000, a maximum useful life of 7 years, and a market…

A: Given The first cost of the equipment is $175,000 Salvage value S=120,000-11000k Annual operating…

Q: Nestle Ltd. It produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and…

A: The optimal duration of downtime refers to the time elapsed between two orders. Annual holding cost…

Q: A cooling tower costs P91,189 will have an estimated life of 9 years. Using double-declining balance…

A: Depreciation expense need not increase as a result of double rate depreciation. Instead, the asset…

Q: 13,000 6. The Imperial Chemical Company is considering purchasing a chemical analysis machine worth…

A: The objective of this question is to calculate the internal rate of return (IRR) for the project of…

Q: What is the internal rate of return of this investment? %

A: The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of a…

Q: Bob is 60 years old, single and a member of the Defined Benefits division at UniSuper (Australia‘s…

A: Risk is the likelihood that a future occurrence or scenario will result in loss, damage, or harm. It…

Q: The Allianz Company produces a specialty wood furniture product, and has the following information…

A: The objective of the question is to calculate the Economic Order Quantity (EOQ) for the Allianz…

Q: A company is considering to construct a new manufacturing plant. The land costs P15,000,000, the…

A: Working notes: (a) Total first cost = land + building + equipment + working capital = 15,000,000 +…

Q: The following pair of assets differ only in the MARR. The problem asks you to determine the effect…

A: Economic lives for an asset refers to the time period when the asset is useful for the owners. The…

Q: 3. A machine costing P 100,000 has an estimated scrap value of P 10, 000 at the end of its economic…

A: * SOLUTION :- As per guidelines we write first problem solution only Rest are re-post please.…

Q: Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards…

A: Present worth is a financial concept that refers to the value today of a future stream of cash…

Q: Michael Wittry has been investing in his Roth IRA retirement account for 24 years. Five years ago,…

A: Here it is clear that there are two investments. To calculate the fraction of amount in respect to…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Step 1: Calculate the Capital Recovery (CR) CostInitial cost of the machine: $24,000Salvage value at…

Q: 78.24 ar 9 to 13) 6%

Q: A new bottle-capping machine costs 65,000, including 8,000 for installation. The machine is expected…

A: Economic life, in the context of finance and business, refers to the estimated period during which…

Q: An investment of $10,000 can be made that will produce uniform annual revenue of $5,300 for five…

A: Initial investment CF0=-10,000 Annual revenue =$5300 Salvage value or market value at the end of 5…

Q: A machine was bought 10 years ago for 30,000 it could be sold today for 10,000 next year for 8,000…

A: Current Value of machine = 10000 Value after 1 year = 8000 Value after 2 years = 5000 Value after 3…

Q: Your company is considering the purchase of a 30-tonne hoist. The first cost is expected to be…

A: Future Worth (FW), in the context of financial analysis and engineering economics, represents the…

Q: A program to improve a ferry system by adding new technology has much promise. The new system will…

A: Net present value (NPV) will be calculated as difference among the present value (PV) of inflows of…

Q: Q1: Determine the present value that will help the company to compensate an annual equivalent…

A: To determine the present value that will compensate an annual equivalent amount of $1,000,000 for…

Q: 3. Angstrom Technologies intends for the company to use the newest and finest equipment in its labs.…

A: To compare the alternatives we will find the annual worth of expenses with making use of the…

Q: Item A is currently in use at a plant. The original cost of the piece of machinery was $2,000. Its…

A: Given that; Initial cost of machinery A=$2000 Maintenance cost is $500 this year, increasing each…

Question

3.
A machine was purchased for $
8,000, with an estimated useful life of
10 years, and it has a scrap value of $
24
1,000 and rate of interest = %10.
%3D
Calculate the following:
The book value at the end of the
seventh year using sinking fund
method. *
O 3,833
O4,833
3,933
3.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

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

Similar questions

J&M Manufacturing plans on purchasing a new assembly machine for $30,000 to automate one of its current manufacturing operations. It will cost an additional $5,500 to have the new machine installed. With the new machine, J&M expects to save $11,000 in annual operating and maintenance costs. The machine will last fivr years with an expected salvage value of $6,000. a. How long will it take to recover the investment (plus installation cost)? The payback period is ? years. (Round up to the nearest whole number.) b. If J&M's interest rate is known to be 13%, determine the discounted payback period. The discounted payback period is ? years. (Round up to the nearest whole number.) Please give proper explanation of the each sub question given above.will give you thumbs up only for the correct answer. Thank you
Subject: engineering economics
What is the Present Worth of Machine A? A firm is considering the purchase of one of two new machines. The data On each are given below. Machine A 3,400 3 yrs 100 2,000/yr Initial Cost Service Life Salvage Value Operating Cost Interest is 12% compounded annually Answer: Machine B 6,500 6 yrs 500 1,800/yr
Can someone double check my work-out? Is my workout and solution correct?
We project unit sales for a new household-use laser-guided cockroach search and destroy system as follows: Unit Sales 100,500 112,500 135,500 141,500 94,500 Year 1 2 3 4 5 The new system will be priced to sell at $470 each. The cockroach eradicator project will require $2,100,000 in net working capital to start, and total net working capital will rise to 15% of the change in sales. The variable cost per unit is $340, and total fixed costs are $2,400,000 per year. The equipment necessary to begin production will cost a total of $22 million. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost. The relevant tax rate is 35%, and the required return is 16%. Based on these preliminary estimates, what is the NPV of the project? (Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $…
Without using excel
Economics
Answer is -$3, 085,828 ( please show your work)
SUBJECT: Engineering Economics Number 5
3. The chimney of the Chemical Enginering building was built 25 years ago in today's currency for 5,000,000 TL. The economic life of this chimney is estimated to be 50 years and there is no salvage value. This damaged chimney must be strengthened or demolished and rebuilt. 3,000,000 TL is required for the strengthening of the chimney and the economic life will increase 30 years as a result of the strengthening. In this case, the annual maintenance cost of the chimney is estimated to be 250,000 TL. If the chimney is rebuilt, 7,500,000 TL will be spent and its economic life will be 60 years. In this case, it is estimated that the annual maintenance cost of the chimney will be 100,000 TL and there will be no salvage value. It is estimated that the demolishment expenses of the old chimney will be 500,000 TL. If interest rate is 20%, as a Chemical Engineer, what kind of decision would you recommend the university to take regarding the chimney of the building?
According to indirect method of cash flow statement, one of the adjustments needed to record is the adjustment about the useful lives of non-current assets. Select one: 1- True 2-False
Give the calculations regarding the sinking fund method of depreciation with an interest rate of 12% compounded annually. Find the book value until 10th year and create a table regarding to depreciation. FC= 100,000 SV= 20, 000 n= 8years i=12%