A new machine is expected to save $33,400 annually in labor can be justified for the purchase of this equipment now if the c the machine's useful life is 6 years? O a. $86,638 O b. $292,375 O c. $200,400 O d. $139,042 $126 402

Q: View Policies Current Attempt in Progress A project that cost $63000 has a useful life of 5 years…

A:

Q: When comparıng the two machines shown below using Capital Recovery method if MARR is 8%? What is the…

A: capital cost recovery can be calculated by using this equation  Capital recovery cost =First…

Q: You are considering starting a new factory producing small electric heaters. Each unit will sell at…

A: Accounting Break even is the number of units to be sold such the profits are exactly zero. It is…

Q: The cost of the machine will be?

A: Given that: Useful life of machine = 4 years Payback period = 2.855 years Annual Cash flow = $80000…

Q: P1: Compute payback period and describe its use.. FasTrac is considering buying a new machine:…

A: Payback period is the period at which the cumulative cash flows become equal to the cost incurred on…

Q: A machine that costs $4456, has a life of 14 years and no scrap value. If money worth 10% then the…

A: Capitalize cost refers to the expense that is added to the fixed asset which is subject to…

Q: MARR = 9.00% This machine has a 9 year economic service life after which it will have a $13,098…

A: MARR = 9℅ Salvage Value = 13,098 Operating costs in first year = 6433 Annual increase = 640

Q: A machine is purchased and depreciated over four years. The tax rate is 21% and the project's cost…

A: Working Note#1Computation of depreciation:Depreciation=Depreciation=Depreciation=$ 172,500Working…

Q: 2. It is rëquired to select one of the three machines. Which machine should be selected, based on…

A: Present worth analysis refers to the difference between the present value of the revenues and the…

Q: pender is P311,000 and a salvage D00, find the annual cost of perpetual service.

A: Annual Cost: It represents the annuity stream of periodic costs made at the end of each period. It…

Q: For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%…

A:

Q: QUESTION 3 For the below ME alternatives, which machine should be selected based on the AW analysis.…

A: NPV can be calculated by following function in excel =NPV(rate,value1,[value2],…) + Initial…

Q: A new production system for a factory is to be purchased and installed for $175,812. This system…

A: Equivalent annual worth  The annual cost of owning and sustaining an asset is determined by dividing…

Q: 5. A machine costs 150,000 and will have a scrap value of 10,000 when retired at the end of 15 money…

A: We need to compute the annualized cost and then capitalized cost of machine. Annualized cost can be…

Q: Cost of equipment: $80,000 Expected annual cost savings to be provided by new equipment: $32,000…

A: NPV  is defined as the sum of the present values of all future cash inflows  less the sum of the…

Q: 5% per year, a machine has a first cost of $8,00 costs and year-end salvage values as shown. The…

A: Equivalent annual cost is the uniform annual cost that is equivalent to all costs that are related…

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A: A continuous and equal expense made over a predetermined period of time is referred to as a uniform…

Q: mectively. Use Annual Cost & CC. 50-ton shovel P30k Z0 ton shovel P38k 20 years 20 years P2k P15k…

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Q: 350 380 400 500 450 Cost (U) Revenue 0 0 500 1000 770 450 880 660 890 770 (U) Year 1 2 3 4 5 6 7 8 9…

A: NET PRESENT VALUE = PRESENT VALUE OF CASH INFLOWS - PRESENT VALUE OF CASH OUTFLOWS

Q: Andes Inc. is considering the purchase of a new automated pallet stacking device to decrease labor…

A: Investment analysis is performed based on all the estimating factors like depreciation,, 99, 254);…

Q: For the below ME alternatives, which machine should be selected based on the AW analysis. MARR-10%…

A: Machine B : AW = 10484.65

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A: Replacement of machine with new machine should be done when there are sufficient benefits so that…

Q: a) Laser beams are being used in a large construction project to achieve the exact alignment of…

A: MARR = 15% N = 4 years

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A: IRR refers to the Internal rate of return and it is the rate of discounting where NPV is zero.It can…

Q: ETM Co is considering investing in machinery costing K150,000 payable at the start of first year.…

A: NPV It is a capital budgeting tool. As per NPV rule, the project should be accepted by the company…

Q: Two alternative machines will produce the same product, but one is capable of higher-quality work,…

A: Equivalent annual cost is the cost of operating and maintaining an asset annually. It is also called…

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

Q: da Company is considering the purchase of a machine and has compiled Initial cost One-time training…

A: Payback period one of the simple method of capital budgeting and it is period required to recover…

Q: you are given the following information about a machine : Investment costs $ 200,000 Salvage Value $…

A: Capital recovery analysis is done before the purchase of a new machine or an asset. Capital recovery…

Q: 4) What is the present worth of the 180 mm pipe over the first 12 years of operation if operating…

A: Present value is the value of all future incomes or costs to the present time. The future income or…

Q: For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%…

A: Equivalent annual Cost is the cost of operating and maintaining an asset annually. It is also called…

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A: Present Worth: It represents the present value of the annual cash flow stream and is computed by…

Q: Choose from the two equipment which is more economical. Machine A Machine B First cost Php 8000 Php…

A: Annual worth distributes present worth into equivalent uniform value over its useful life.

Q: Given the two machines' data Machine A Machine B First Cost P8.000.00 P14,000.00 Salvage value…

A: Equivalent uniform annual Cost=Initial CostPresent Value Annuity Factor+Annual Cost

Q: choose the best alternative A or B using net present worth method ?

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Q: 10) Assume the following information: I Land investment cost = $2,000,000 1 Building investment cost…

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Q: A manufacturing company is trying to decide between the two machines shown below. Determine which…

A: Equivalent Annual Cost:  It is the yearly cost incurred for  buying and keeping a resource. It is…

Q: 4 The management of Ballard MicroBrew is considering the purchase of an automated bottling machine…

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Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.