depreciated on the reducing-balance

Q: A piece of equipment costs ₱355,000 including shipping, installation and taxes. The supplier assures…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: James invests Rs 200,000 in a Turbo Engine that will increase production of Holé Tubes. The Engine…

A: a) Free cash flows         Sales Revenue =   90000 in year 1 For subsequent yrs =  Prev yr sales…

Q: Bob's BLT's purchases a sandwich making machine for $5,929 at the beginning of Year 1. He expects…

A: Depreciation expense :— It is the allocation of depreciable cost of an asset over the estimated…

Q: Heritage Company uses a job-order costing system to assign costs to jobs. It had no work in process…

A: Work in progress inventory is that inventory which is not completed yet. Finished goods inventory is…

Q: My car depreciates 8.3% per year.  Its original value was $19,000.  Find its value 6 years later.…

A: The value of car after 6 years can be calculated as per the written down value method

Q: The purchase of an item of construction equipment is fifty thousand Kenya shillings(kshs) . The…

A: Depreciation is the amount of reduction in the value of asset due to its normal usage in the…

Q: You purchased a machine for $1.09 million three years ago and have been applying straight-line…

A: Purchase cost = $1,090,000 Life = 7 Years Used period = 3 years Tax rate = 0.22 Sale value =…

Q: Find the cash flow from the sale of the asset.

A: Depreciation:-  Depreciation means the value of the asset that gets reduced over a period of time…

Q: You purchased a machine for $1.09 million three years ago and have been applying straight-line…

A: Purchase cost = $1,090,000 Life = 7 Years Used period = 3 years Tax rate = 0.38 Sale value =…

Q: Custom Cars purchased $39,000 of fixed assets two years ago that are classified as 5-year MACRS…

A: Initial price= $39000Depreciation in year 1= 20%Depreciation in year 2= 32%Selling price in 2 years…

Q: The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece…

A: Book value of the asset refers to the value of asset after depreciation for the year.

Q: If Ricky Padilla uses the straight-line method to depreciate an asset, depreciation expense will be…

A: First we will calculate the book value of machinery using straight line method - Let the book value…

Q: A high-pressure reactor vessel in a pharmaceutical company was purchased for $200,000. It has a…

A: After-tax cash flow of the vessel is the net proceeds from the sale of vessel. Net proceeds means,…

Q: A machinery that costs $100,000, has a service life of 5 years and a salvage value of $10,000 at the…

A: Initial Investment  $   1,00,000.00 Salvage Value  $      10,000.00 Tax Rate  30% MARR After…

Q: rate is 21%. If you sell the machine today (after three years of depreciation) for $794,000, what is…

A: Incremental Cash Flow: It is the additional operating cash flow received by the firm for taking on…

Q: A piece of equipment costs ₱378,000 including shipping, installation and taxes. The supplier assures…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Southern inc. purchases an asset for 98,000. Thus asset qualifies as a 3 year recovery asset under…

A: Cost of the asset = $98,000The book value of the asset at the end of 2 years is

Q: The capital cost of a property is $5900000. A CCA rate of 20% is applied. The tax rate is 30%. Take…

A: A) Closing book value of Property Year Opening value ($) CCA @ 20% Closing Value ($) 1 5900000…

Q: A machine of the factory cost RM100,000. The machines depreciates 10% every year by using straight…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: Fargo Corp. is considering the purchase of a new plece of equipment The equipment costs $51,400 and…

A: Answer a) Calculation of Annual Depreciation on Equipment Annual Depreciation on Equipment =…

Q: A printing machine initially costs ₱139,000. It can be sold for ₱15,000 at the end of its 11-year…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: Precision Ltd is considering an equipment that costs $176,000, and is depreciated on a straight-line…

A: Depreciation refers to the measure which allocates the cost of an asset over some specified useful…

Q: A company purchases an industrial laser for ​$123,000. The device has a useful life of 4 years and a…

A: After tax cash flow can be determined by deducting depreciation and taxes from the operating cash…

Q: Jose and his friend invest in a machine for their business that costs P1,200,000.00. The machine has…

A: Calculation of Depreciation for 5th year  Depreciation = Cost of Asset x Factor for Depreciation…

Q: Three years ago, your firm bought a new machine for $3,000. The machine was depreciated on a…

A: Remaininglife=6years−3years=3YearsBookvalue=(Purchaseprice)∗Remaininglife/Totallife.=($3,000)∗3/6.=$…

Q: milan purchases equipment costing $509,634. the ewuipment is to be depreciated straight line to zero…

A: Terminal cash flow can be calculated by with the help of following formula  Terminal Cash Flow…

Q: A van is bought for $15,000 in Year 0. It generates revenues of $25,000 per year and expenses of…

A: Here, Initial Investment is $15,000 Revenue is $25,000 per year Expenses is $20,000 per year…

Q: Your firm buys a new equipment for Rs. 80,000. It will give your firm annual savings of Rs. 27,000,…

A: To open the "IRR function" window - MS-Excel --> Formulas --> Financials --> IRR.

Q: The following is governed by an income tax rate of 25% . Depreciation rate is determined using MACRS…

A: Correct option is 1.

Q: The cost of the machine is $14, 475. The CCA rate is 29% After 9 years, the machine is sold for $719…

A: The objective of the question is to calculate the present value of the Capital Cost Allowance (CCA)…

Q: Pamantasan ng Lungsod ng Maynila buys a solar panel unit for P105,000. The shipping and installation…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece…

A: The projected residual worth of an asset at the end of its useful life is referred to as salvage…

Q: An asset costs $19,000. At a depreciation rate of 20 percent, calculate its book value using…

A: Depreciation is considered as an expense that is charged on the value of the Asset. It can be…

Q: (a) Declining balance method, (b) DDB method, (c) sinking fund method g iven interest rate at 12.5…

A: Since this is multi- part question, we are going to solve only first three parts for you. To get the…

Q: $1,000 in exp e depreciatie

A: Part A Initial Cost of Equipment +Overhead= $20000 Initial cost of equipment after tax= $25600…

Q: Based on this information the payback period is:

A: Annual cash flow=Depreciation+Net income =(10000+5000)=$15000

Q: You buy a piece of equipment for $2,000 and depreciate it over time to $500. You then sell the…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: .Calculate (a) net present value, (b) payback period, and (c) internal rate of return.

A: Net Present Value is the excess of present value of cash inflow to that of present value of cash…

Q: Suppose that a company is considering a machine acquisition. The new machine will cost $60.000 and…

A: Investment cash outflow : It refers to the outgoing of cash that occurs in a company due to…

Q: Steven found that the value of his new car is currently $31,200 and will depreciate 6.9% per year.…

A: Value of new Car is $31,200 Depriciation rate is 6.9% Time period 5 years To Find: Value of Car…

Q: You purchased a machine for $1.19 million three years ago and have been applying straight-line…

A: Let's take a closer look at the computation of the additional cash flow from selling the machine. 1.…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.