An asset with a purchase price of $486,966 falls in the 5-year MACRS asset class. The asset will be soldat the end of a three year project for $153,883. What is the book value of the asset at the end of theproject? Round your answer to the nearest dollar.YearDepreciable Allowance120%321912116.6.4-

The book value is calculated as the cumulative depreciation over 3 years multiplied by asset cost

Answered: An asset with a purchase price of…

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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2. Using a 8% interest rate, determine which device, if any, should be selected based on net present worth. Initial Cost -S600 Annual Benefit Salvage Value $100 Useful Life 5 years 10 years Device A $250 Device B -S700 $100 $180
if an asset costs $s0600 and is expected to have a $4900 salvage value at the end of its 9-year life, and generates annual net cash inflows of $9200 each year, the cash payback period is O6.0 years. O5.5 years O5.0 years. O9.0 years
Please solve and explain! indicate your final answer!
A machine is purchased for P100,000. If the annual maintenance cost is P1,800, determine the capitalized cost of perpetual service with an interest rate of 8%. P325,000 P425,000 P525,000 P625,000
suppose you decide to deposit $6400 into w 3 year cd wirh a 2.5 apy the value of the cd after a year is
A3) Finance A property can be purchased in cash or through an equivalent plan, over 20 years, consisting of equal monthly payments (before monetary correction), at the effective rate of 8.60% per year. Monetary correction is made monthly, using the reference rate (RT). Throughout this period, the monthly average RT was 0.60%. Knowing that the twentieth installment was $2170 (after monetary correction), obtain the cash value of the property.
A Property is expected to have 5 Year NOI flow of $10,000, $12,000, $15,000, $18,000, and $10,000 and a final (year 5) sale price of $90,000. Using capitalization rate of 12% what is the estimated market value of the property? 97,354 104,664 87,641 100,919 90,724
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
Determine the present worth in year 0 of the following cost. Interest rate is 10% per year. Year Cost ($1000) 0 -850 1 -300 2 -400 -400 -400 -500 WN 3 4 5
QUESTION 3 If the first cost of an asset is $15,000, and an annual operating cost of $5000 with a salvage value of $3000 after 5 years. What will be the Annual worth and the Capital recovery. If i- 10% O AW -S-8465 and CR - $+4508 O AW = S-8465 and CR = $-4508 AW = S+4508 and CR = $-8465 O AW S-4508 and CR S-8465
The equivalent annual worth of alternative A is closest to:a. $-25,130b. $-37,100c. $-41,500d. $-42,900
Two mutually exclusive alternatives have the estimates shown below. Use annual worth analysis to determine which should be selected at an interest rate of 10% per year. Q $-44,000 R $-84,000 First Cost AOC per Year Salvage Value $-10,000 $-5,000 in year 1, increasing by $1,000 per year thereafter $4,000 $5,000 Life 2 years 4 years Alternative (Click to select) should be selected.

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