A sports car was bought at 1,000,000 and is assumed to have a useful life of 10 years having a scrap value of 100,000. Assuming double declining balance method, what is its book value at the end of the 5th year? Your answer should only be a REAL NUMBER with NO UNITS and NO COMMAS. Round off to nearest 2 decimal places (e.g. 2500.36).

A sports car was bought at 1,000,000 and is assumed to have a useful life of 10 years having a scrap value of 100,000. Assuming double declining balance method, what is its book value at the end of the 5th year? Your answer should only be a REAL NUMBER with NO UNITS and NO COMMAS. Round off to nearest 2 decimal places (e.g. 2500.36).

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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The value of a piece of equipment depreciates exponentially. It cost $250,000 new. Each year it depreciates at a rate of 11% of its original purchase price. Determine the value of this equipment after 5 years. Round to the nearest dollar. ANS 8)
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Imagine you have purchased an equipment today for P price. After N years of service you put it on Kijiji to be taken for free. Basedon this scenario, which depreciation model shows 100% depreciation in the first year of the service life of this equipment?Double Declining BalanceSOYDDeclining Balance150% Declining BalanceNone of the given answer
It is determined that the value of a piece of machinery declines exponentially. A machine that was purchased 3 years ago for $74000 is worth $42000 today. What will be the value of the machine 6 years from now? Round any intermediate calculations to at least four decimal places, and round your answer to the nearest cent.
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vehicle purchased for $22,400 depreciates at a constant annual rate of 7%. Determine the approximate value of the vehicle 10 years after purchase. Round to the nearest whole dollar. (Hint: Write and evaluate an exponential function to answer this question.)
24). from the following facts,for the sum of years digits what is given: cost : $15,000 residual value : $4000 est useful life: 4 years required: what is the book value for end of year 3?
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A new car is sold for $ 35,000, but the next year its price is specified as $ 31,400. How much is the vehicle's depreciation amount in the first year? $ 4,600 zero dollars $ 1,400 $ 3,600 O $2,600
4. An equipment was bought at a cost of P 200,000 with an estimated life of 20 years. It had an income of P 60,000 annually. The equipment has a salvage value of P 30, 000. The payback period is 5 years. Calculate the monthly expenses. Use straight line method.
Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of every year of a machine whose purchase value is 25,000$. Find the economic life of the machine assuming interest rate, i = 15%. End of Year (n) 1 2 3 4 5 6 7 8 9 10 Cost operation at the end of year ($) 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 Maintenance cost at the end of year ($) 300 400 500 600 700 800 900 1000 1100 1200 Salvage value ate end of the year ($) 9000 8000 7000 6000 5000 4000 3000 2000 1000 500

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