A machine, which costs $100,000 when new, has a 15- year lifetime and a salvage value equal to 20% of its original value. Determine the capital recovery costs, based on an interest rate of 10% per year, compounded annually. a. $13,777 b. $21,111 c. $12,833 d. $12,518
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- .1. An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage value after its 4-year life. Determine the capital recovery amount over the 4-year life if a MARR of 10% per year is required.An asset costs $210,000 with a $30,000 salvage value at the end of its ten-year life. If annual cash inflows are $30,000, the cash payback period isa) 8 years.b) 7 years. c) 6years. d) 5 years.An asset costs R6 300,000 with a R900,000 salvage value at the end of its ten-year life. If annual cash inflows are R900,000, the cash payback period is A. 8 years. B. 7 years. C. 6 years. D. 5 years.
- Please answer if you conform and give correct answer.The first cost of a machine is $375,000 with a 7 years life. Annual interest rate is 20% and the expected annual maintenance cost of this machine is $15,000. For each case in the following, calculate the double declining balance depreciation payments if its salvage value is A) $85,000 B) $10,000 C) $35,575.A piece of equipment has a first cost of $165,000, a maximum useful life of 7 years, and a market (salvage) value described by the relation S = 120,000 – 23.000k, where k is the number of years since it was purchased, The salvage value cannot go below zero. The AOC series is estimated using AOC = 60,000 + 12,000k. The interest rate is 13% per year. Determine the economic service life and the respective AW. The economic service life is 4 year(s) and the AW value is $ 100,000 a
- A set of Wire Bond machine costs $500,000. This amount includes freight and installation charges estimated at 10% of the original price. If the machine shall be depreciated over a period of 10 years with a salvage value of $5,000, what is the book value at the end of 7 years using SOYDM?Determine the capitalized cost of a large-format printer that has a first cost of P1.20 million and a salvage value after five useful years equal to P600,000. The operation has a maintenance cost of P100,000 every after 3 years. Use interest rate, i = 10% O P3.31 M O P 2.28 M P 2.36 M O P 3.26 M$500,000 is invested in equipment having a salvage value equal to $500,000(0.80n) after n years of use. O&M costs equal $125,000 the first year and increase $15,000 per year. Based on a MARR of 10%, what are the optimum replacement interval and minimum EUAC?
- Xavier Co. wants to purchase a machine for $37,400 with a four-year life and a $1,100 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,400 in each of the four years. What is the machine's net present value? Periods Present Valueof $1 at 8% Present Value of anAnnuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its book value at year 3 with 3.24% interest rate. Use Sinking Fund MethodHow do you solve for the value encircled? Show step by step.

