A manufacturing plant installed a new boiler at a total cost of P 150,000 and isestimated to have a useful life of 10 years. It is estimated to have a scrap value atthe end of the useful life P 5,000. If interest is 15% compounded annually,determine the capitalized cost.P 318,867P 218,867P 197,610P 497,710

Given: Particulars Amount Plant cost -150,000 Life 10 Scrap value 5,000…

Answered: A manufacturing plant installed a new…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A machine costs P840,222 with a scrap value of 10% of the original price at the end of its life of 8 years. What is the annual depreciation by sinking fund at 24%?
The information below relates to the purchase of equipment: investment in the project: $10,000 Net annual cash inflows: 2,400 Working capital required: 5,000 Salvage value of the equipment: 1,000 Life of the project: 8 years At the completion of the project, the working capital will be released for use elsewhere. Compute the net present value of the project, using a discount rate of 10% $606 $8,271 ($1,729) $1,729
Project XYZ has a first cost of $75,000, operating and maintenance costs of $10,000 during each year of its 10 years life, and a $15,000 salvage value. What is its equivalent uniform annual cost (EUAC) if the interest rate is 10%/year? Most nearly number for answer. O No correct answer 21546 O 21262 21622 26223 22126
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A certain factory has a first cost of P10,000,000 with a salvage value of P100,000 at the end of its 25-year life. Solve for its book value on the 15th year using a. Straight Line Method b. Sinking Fund Method @ i = 10% c. Declining Balance Method d. Double Declining Balance Method e. Sum of the Years Digit Method
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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.
The boiler in a steam power plant costs P 20,000,000 and has a salvage value of P 950,000 at the end of 25 years. Determine the annual depreciation of the equipment using the Straight-line method and Sinking fund method at 6% compound interest annually.
A nine year project involves equipment costing $2,320,000 that will be depreciated using the five-year MACRS schedule. If the estimated pre-tax salvage value for the equipment at the end of the project's life is $417,600, what is the after-tax salvage value for the equipment? Assume a marginal tax rate of 21 percent. O $329,904 $399.184 $6,496 O $505.296

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