(( course : project appraisal ))4.A new project is evaluated at present that involves purchasing a new assembly machine for RO 25,000. Itwill cost RO 2,000 to install the machinery. By making the investment, the annual operating costs will bereduced by RO 7,000 and expect to save RO 500 a year in maintenance.The new machine will require RO750 each year for technical support. The machinery will be subject to depreciation over 5 years under thestraight-line method of depreciation with an expected salvage value of RO 5,000. The effective tax rate is35%. Calculate Relevant Cash Flows for Capital Project.

calculated relevant cash flows for capital project ": Relevant cash Flows During the year will…

Answered: ave RO 500 a year in maintenance.The…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Find the periodic payment into a depreciation fund, for a filing cabinet which cost 5,400with a scrap value of 150 after a useful life of 10 years. If money is worth 6 ½%. (Sinking fundmethod)
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A building is to be paid indefinitely at the rate of 6%. The building's price is P1M if paid in cash. What is the amount of the building today for 12 years at the rate of 4.83% compounded continuosuly? Solve and explain
Find the capitalized cost of a present cost of P800,000, annual costs of P55,000, and periodic costs every 5 years of P95,000. Use an interest rate of 10% per year.
A generator costs ₱500,000 and whose salvage value is ₱10,000 after 20 years. How much is the depreciation charge at the end of 12 years using SYDM, What is the total depreciation at the end of 12 years using SYDM, and What is its book value at the end of 12 years using SYDM?
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
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A commercial property has PGI of $5 million, expenses of 40% of EGI and the vacancy is underwritten at 10%. What values would the following parameters suggest for the property. 70% LTV with a rate of 4.5% and 360 month amortization schedule. Given a property value of $45 million, calculate PGIM, EGIM, Cap Rate, Cash on Cash return and DSSCR.
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4. Project cost is 40,000 and the cash inflows are Rs. 10,000, the life of the project is 5 years. Calculate the pay-back period.
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

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ave RO 500 a year in maintenance.The nev