A P22,000,000 chemical plant had an estimated life of 10 years and a projected scrap value of P2,000,000. After 5 years of operation, an explosion made it a total loss. How much money would have to be raised to put a new plant costing P30M if depreciation reserved is maintained during its 5 years of operation using: SFM at 6% interest DBM SYDM

A P22,000,000 chemical plant had an estimated life of 10 years and a projected scrap value of P2,000,000. After 5 years of operation, an explosion made it a total loss. How much money would have to be raised to put a new plant costing P30M if depreciation reserved is maintained during its 5 years of operation using: SFM at 6% interest DBM SYDM

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

CAPITALIZED COST 1. Compute the capitalized cost of a new car worth P800,000.00 if it is estimated that it requires P20,000.00 per year to maintain and must be replaced at the same amount with a salvage value of P300,000.00 after 5 years if the interest rate is 12% per annum.
provide a clear solution
CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates: A B C Acquisition Cost P700 000.00 P850 000.00 P1 000 000.00 Shipping Cost 5% 5% 8% Net Annual Benefit P155 000.00 P145 000.00 P170 000.00 Useful Life 8 years 16 years 16 years Salvage Value P35 000.00 P70 000.00 P80 000.00 If at the end of eight years alternative A could be replaced with an identical machine having the same cost and benefits, determine the alternative to be selected using present worth analysis and a 14% MARR. (Ans. PTA= -P5005.80; PTB= P24 536.06; PTC= -5108.53; select alternative B)
ENGINEERING ECONOMY
None
CC1 company is considering an investment (at time = 0) in a machine that produces arrows. The cost of the machine is 42205 dollars with zero expected salvage value. Annual production in units during the 3-year life of the machine is expected to be (starting at time = 1) 4046 , 7950, and 10350. The arrows sale price per unit is 13 dollars in year one and it is expected to increase by 6% per year thereafter. Production costs per unit will be 5 dollars in year one, and then increase by 4% per year. Depreciation on the machine is fixed at 14204 dollars per year, and the overall tax rate is 40%. and the minimum acceptable rate of return is 10% percent. Calculate the net present value of this investment. Assume all flows are at the end of each year. round your answer to the nearest cent.
What is the present worth equivalent of the machine considered to be the most preferred choice? (i=10%) show detailed solution
Heip Save & Exit Submit Homer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would resuit in an annual increase in net Income after tax of $153,000. The equipment will have an initial cost of $510,000 and have a 5-year life, If the salvage vaiue of the equipment is estimated to be $27,000, what is the annual net cash flow? Multiple Choice 12 $126,000 $56,400 $249.600 $180.000
s
A machine that costs $2522, has a life of 14 years and no scrap value. If money worth 10% then the capitalized cost will be: O $3423.52 O $2793.02 O $5567.22 O $4684.52 O $2162.52 What will be the Future value on an investment account of $9346 compounded semiannually at 8% for 3 years? on O $11871.64 O $11862.27 O $11843.80 O $11858.54 O $11825.67
need solution as soon as possible
( 1 contractor want to invest his money in on of project A or B if you know that the interest rate is 10%, choose the best alternative A or B using net present worth method? A 120 000 CU 15 000 CU/YEAR 10 000 CU/YEAR 12 000 CU 12 YEARS 3000 CU Initial investment Annual revenue Annual expense Salvage value Project life Cost of machines replaced every 3 حلقه میشو الباب diq Naama years B 135 000 CU 17 000 CU/YEAR 11 000 CU/YEAR 20 000 CU/YEAR 6 YEARS 3500 CU