apitalized cost of an asse

Q: Consider the following financial data for an investment project:• Required capital investment al n =…

A: The calculation is: Note: No depreciation in the 10th year will be there because the project will…

Q: Q.6 An asset will cost $20 000 when purchased this year. It is further expected to have a salvage…

A: As per our guidelines we can share only first 3 subpart of the given question   So here is the…

Q: Consider the following financial data for an investment project:• Required capital investment at n =…

A: According to the 7-year MACRS Depreciation Schedule Whole assets will be written off in the Year 8th…

Q: A machine has a first cost of P50,000 with interest rate of 10% annually. Expected salvage value…

A: concept. The Sinking Fund Method:- In this method,  sinking funds will accumulate for replacement…

Q: Determine the capitalized cost of a project that cost P324,000 with an anticipated salvage value of…

A: Given That: Fixed Cost=Replacement Cost=P324000 i=8%=0.08 Salvage Value=P50000 Maintenance…

Q: Merill Corp has the following info available about a possible capitol investment. Initial…

A: Given data, Initial Investment = $1,200,000 Annual Net Income = $120,000 Expected Life =8 years…

Q: PART A.) Decide which of the following machines should be selected (if one of them MUST be selected)…

A: PARTICULAR AMOUNT YEARS PV @8% AMOUNT           FIRST COST (20000) 0 1 (20000) ANNUAL…

Q: The exit price of an asset is RO 10,000 and the cost of disposal of the asset is RO 150. The asset…

A: Net realizable value is defined as estimated selling price less cost of disposal.

Q: 1. Two alternatives are being considered for installation. Which should be selected based on a…

A: Present worth tells the present value of the cost. It is calculated by discounting all the future…

Q: An asset was purchased for P1,000,000.00 to be retired at the end of 15 years with a salvage value…

A: Discount rate = 8% Annual operating cost = 180,000 Salvage Value = 40,000 Purchase Price (initial…

Q: A bridge that was constructed at a cost of $80,000 is expected to last 50 years, at the end of which…

A: Capitalized cost is referred to as the present worth of the cash flows, which usually go for an…

Q: Which investment is more suitable to be decided for the new facility to be established? Interest is…

A: To determine which investment is more suitable, let's calculate the net present value (NPV) for each…

Q: A machinery worth BD20,000 has a lifetime of10 years and a salvage value of Rs. 1500. Calculate the…

A: Using the sinking fund method: Accumulated Depreciation=BD 12,584.21272 Book value at the end of…

Q: See image for MACRS table 1) What is the Ending Book Value at the end of year 3 using MACRS: $    2)…

A: Calculate the Book value at the end of year 3 and after-tax salvage value as follows:

Q: Determine the capitalized cost of a personal computer that worth Php 50,000 with a salvage value of…

A: We Know that capitalised cost is the present value of all cash outflow during the lifetime of the…

Q: 2. The purchased price of the equipment is P12,000 and its estimated maintenance costs are P500 for…

A: Purchase price = P 12000 Maintenance cost for first year = P 500 Maintenance cost for second year =…

Q: Compare the alternatives below on the basis of their capitalized costs with adjustments made for…

A: Capitalized cost Capitalized cost refers to expenses that are summed to the cost basis of a fixed…

Q: years and a t for the firs 201

A: On a financial statement, a capitalised cost is an item that is added to the cost base of a fixed…

Q: An asset cost $200,000.  It has a salvage value of $40,000.  It has a 10 year life.  What would be…

A: Annual Depreciation under Straight-Line Method = (Cost - Salvage Value) / Useful Life

Q: he following present value factors are provided for use in this problen f $1 at 8% Present Value of…

A: (NPV) is a financial metric used to evaluate an investment project's profitability in capital…

Q: Compare the alternatives shown on the basis of their capitalized costs using a MARR of 10% per year.…

A: The capitalized-equivalent-worth approach, also known as Capitalized Cost (CC) Analysis, determines…

Q: Capitalized cost is an application of perpetuity. It is the sum of the first cost and the present…

A: A perpetuity is a series of cash payments that have no maturity value. The capitalized cost is used…

Q: A bridge with initial cost of P50,000,000 has a life of 20 years. The bridge must be partially…

A: Capitalized cost refers to present value of all future expenditures that would be incurred if the…

Q: The replacement value is $ (?).

A: Replacement Value : Replacement value refers to the cost of replacing an asset or property with a…

Q: A machine was purchased with an amount of P375,000.00 and a modification cost of P100,000.00 after…

A: Capitalization costs include: Installation costs Labor charges Transportation costs Interest…

Q: determine the capitalized cost. Draw the diagram.

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: Compare the alternatives shown on the basis of their capitalized costs using a MARR of 10% per year.…

A: Alternative M:First cost= -$150000Annual cost= -$80000Salvage value= $8000Life(n)= 5…

Q: What is the annual depreciation? What is the book value after 6 years? What is the total…

A: Particulars Amount (P) Cost of equipment 500000 Installation cost 60000 Other Cost 40000…

Q: First Cost 300000 Present worth of the annual maintenance cost *Letters only Perpetuity of the…

A: Given:- Initial cost=P300000 Replacement required at every 15 years Annual maintenance cost= P5000…

Q: The following information is available to use in deciding whether to purchase the new backhoes or…

A: Computation of Pay back period is as follows:

Q: An asset costs R6 300,000 with a R900,000 salvage value at the end of its ten-year life. If annual…

A: Payback period is one of the simple method of capital budegting techniques and it is the time…

Q: The cash flows and Net salvage value of Project Y is given the following table: Year Cash flows…

A: The economic life of the project or an asset can be found by finding the NPV (which is one of the…

Q: If an asset costs $65,000 and is expected to have a $5,000 salvage value at the end of its ten-year…

A: Cash payback period  = Initial  investment  /annual cash inflow

Q: Merrill Corporation has the following information available about a potential capital investment:…

A: Workings in Excel:Final values:

Q: The concrete pavemen requires $15,000 of repair during years 12, 25 and 40. The asphalt pavement…

A: Concept of PWF and LCC

Q: Find the capitalized cost for the following information: Note: Write a positive number, with at…

A: A capitalized cost seems to be a cost spent as a result of the purchase of a fixed asset that has…

Q: Given the following data of equipment A and B. B A P 50 000 P 150 000 2000 First Cost Salvage Value…

A: Rate of return shows the net return that is the gain or loss over a specified time frame of an asset…

Q: Compare three alternatives on the basis of their capitalized costs at i 14% per year and select the…

A: Capitalized cost is the present worth of the annual cost over the tenure of the project or…