Q: The first costs of an equipment is P 65,000 and a salvage value of P 3,000 at the end of its 6 –…
A: cost of equipment = 65000 salvage = 3000 P time = 6 years Method = sum of year digit method
Q: For equipment that has a first cost of $13,000, the estimated operating costs and year-end salvage…
A: PLEASE FIND THE ANSWER BELOW. ECONOMIC SERVICE LIFE: It is the life at which the value of the…
Q: A machine cost P480, 000 and has a salvage value of 10% of its cost at the end of its life of 30,000…
A: 1. 1. Book Value=P-tP-SLtWhere,P= Initial ccost S=Salvage valueLt=Lifetime of the…
Q: What is the book value (to the nearest cent) for the asset in year 1 if straight-line method is…
A: Answer; Given data Cost of Asset = $ 50,000 Useful Life = 6 years Salvage Value = $4,000
Q: The following data shows the different sizes of pipes which a company wishes to use as a replacement…
A: Initial Cost 1800000 Annual Cost 88000 Operating Cost 240000 r 10%
Q: Which are the three aspects of the replacement problem?
A: Replacement problem is important to understand as one needs to realize the cost at which asset is…
Q: dump truck bought for P900,000 six years ago. It will have a salvage value of P100,000 two years…
A: Dear Student, as you have posted multiple questions but according to our policies and guidelines we…
Q: Sacramento Cab Company owns several taxis that were purchased for $25,000 each 4 years ago. The…
A: Leasing plan: It is a plan in which the one party tries to make or agrees to rent a property which…
Q: A company in Denver started a new production line to manufacture a new part. The table below showed…
A: The cost of production is the cost incurred in the process of production in the economy by a firm.…
Q: What is One important consideration in comparing defender and challenger?
A: The important comparison for defender and challenger analysis is Equivalent uniform annual cost.…
Q: A method of economy studies that does not take into consideration the economic life of the physical…
A: The method of economic studies that consider the economic life of the physical asset. a Future worth…
Q: A tire bought for P1, 000 is expected to be useful in travelling 100km aftrer which it can be sold…
A: Given information:- Cost of tire = P 1000 Life = 100 KM Scrap value = P 50…
Q: It is desired to determine the present economic value of an old machine by considering how it…
A: The present value of an equipment can be determined by by discounting the future cash flow of the…
Q: When should the eventual salvage value of an asset be estimated?
A: The salvage value is calculated by using the formula is represented as follows: Here, The original…
Q: A method of economy studies that does not take into consideration the economic life of the physical…
A: Present worth method of economy studies that do not take into consideration the economic life of the…
Q: What are the three aspects of the replacement problem?
A: Replacement problem is important to understand as one needs to realize the cost at which asset is…
Q: From the data shown, determine the economic service lives of the defender and challenger. (Note:…
A: In this case, the annual worth a value of defender and challenger is compared with each years of and…
Q: If a replacement study is performed and the defender is selected for retention for nD years, explain…
A: A replacement study is conducted to evaluate the annual worth of an asset and determined the…
Q: Julie’s Bakeshop bought a loaf bread machine for P500,000 on June 1, 2010. It is estimated that it…
A:
Q: A man bought a machine for P935,303 which has useful life of 5 years. It has a salvage value of…
A: Given Information: Price of machine = 935,303 Salvage value = 20,000 i = 22% or 0.22 n = 5 years
Q: e following data shows the different sizes of pipes which a company wishes to use as a replacement…
A: Initial Cost 1800000 Annual Cost 88000 Operating Cost 240000 r 10%
Q: salvage value is 10% of the cost of equipment at the e book value at the end of the fourth year…
A: One technique bookkeepers use to decide this sum is the straight line premise method. To work out…
Q: Consider two basic approaches to analyzing replacement problems: the cash flow approach?
A: The cash flow approach: It considers cash-flows impact while replacement of alternatives. In this,…
Q: How can we calculate the Economic Service Life for Defender?
A: The economic service life of a defender is a period in which the annual equivalent cost is minimum.…
Q: HCT purchased a printing server Al, 7 years ago for $50,000. Unfortunately, this server has broken…
A: AII costing $60,000 SII costing $40,000
Q: Hospitality Enterprises is planning to build a new 112 room inn in Martin. The initial cost of land…
A: Given annual maintenance cost = $25000 MARR = 5% Salvage value = $100000 Life of investment = 20…
Q: A certain machine has a initial cost of 50,000 and a book a value of 15,811.39 after five years.…
A: Given information Initial cost=50000 book value after 5 year=15811.39 n=10 year
Q: (Mohammed) has a company that includes fixed costs for land rent (5000), monthly employee salaries…
A: Total costs refers to the minimum cost of production to produce some output. The total cost in made…
Q: 10. A generator costs P500,000 and whose salvage value is P10,000. after 20 years. Find the book…
A: Given the cost = P500000Salvage value = P10000Time = 20 years
Q: How can we determine the economic service life of the asset?
A: The asset is the any useful or valuable commodity that is owned by an individual in the economy. The…
Q: Five years ago a consulting engineer purchased a building for company offices constructed of bricks…
A: Future value (FV) is the value of an ongoing asset at a future date in light of an accepted pace of…
Q: 5. The physical life is always greater than all the other “life" factors under replacement analysis.
A: Physical life of an assets is the full life span of an asset, where market value of assets is 0 that…
Q: An exporter offered a price by USD 500 M/T CIF New York. If the freight costs is USD 30 per M/T, and…
A:
Q: Machine A was purchased last year for $20,000 and had an estimated market value of $2000 at the end…
A: Given:- Two machines A and B purchased Machine A cost=$20,000Machine B cost=$14,000Salvage Machine…
Q: 8. A machine has a first cost of P200,000 with a scrap value of P25,000 at the end of Its economic…
A: The double declining balance depreciation (DDB) method, also known as the reducing balance method,…
Q: Can we take the Replacement Decisions when the required service period is long?
A: Replacement: Replacement analysis refers to a crucial analysis in capital budgeting when the asset…
Q: Lombard Company is contemplating the purchase of a new high-speed widget grinder to replace the…
A: Depreciation Shedule WITH PROPOSED MACHINE:…
Q: he first costs of an equipment is P 65,000 and a salvage value of P 3,000 at the end of its 6 – year…
A: Let's Assume we buy equipment in the Year 2001.
Q: How can the engineers handle unequal Service Life Problemsin Replacement?
A: The analysis to determine whether an in-place item requires replacement because of Obsolescence, New…
Q: Sacramento Cab Company owns several taxis that were purchased for $25,000 each 4 years ago. The…
A: Company owns the several taxis that were purchased for $25,000 each 4 years ago. The market value of…
Q: In a replacement study, the correct value for the first cost of the challenger is:a. the cost when…
A: In a replacement study, the correct value for the first cost of the challenger is
Q: Define replacement analysis
A: Replacement analysis is a very important analysis in capital budgeting i.e. in the process…
Q: What are the Replacement Decisions when required Service Life Is long?
A: Replacement: Replacement analysis refers to a crucial analysis in capital budgeting when the asset…
Q: year for repairs, adjustments, and shutdowns. A new mac omplish the functions desired and has an…
A: *Answer: Solution : Old Machine New Machine Cost 2,000…
Q: A machine has a cost of Php 13173.00. It has a salvage of Php 2072.00 and an economic life of 9…
A: Sum of years depreciation factor is calculated by adding all years . For example if life is 3 years…
Q: Kermit bought a production line 5 years ago for $35,000. At that time it was estimated to have a…
A: To perform a replacement analysis The defender must be analyzed using a first cost of 12000 and…
Q: A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is…
A: Given The first cost of a machine P =80,000 Estimated life n=10 years Salvage value F =5000 We have…
Q: the manager has determined that a potential new product can be sold at a priceof$12.50 each. The…
A: Answer: Given, Price per unit = $12.50 each Cost per unit (variable cost) = $7 Fixed cost = $20,000…
Do the operating costs differ between the defender and challenger? Explain how?
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Solved in 2 steps
- Can we take the Replacement Decisions when the required service period is long?What are the Replacement Decisions when required Service Life Is long?It costs $50,000 to start a production process. Variable cost is $25 per unit and price is $45 per unit. What is the break-even volume? 2000 units 1000 units 1111 units 2500 units
- How many barrels can the first period consume before any User Cost occurs?In a replacement study, the correct value for the first cost of the challenger is:a. the cost when it is purchased.b. the first cost minus the trade-in value of the defender.c. its first cost plus the trade-in value of the defender.d. the book value of the defender.The economic service life of an asset is:a. the length of time required to recover the first cost of the asset.b. the time when the operating cost is at a minimum.c. the time when the salvage value goes below 25% of the first cost.d. the time when the AW of the asset is at a minimum.
- A mass diagram from sta. 0+00 to sta. 50+00 is plotted as below. The free-haul distance is 1000' The earth excavation cost is $0.12 per yd and the overhaul cost is $0.02 per yd per station. Calculate the Economical Haul Distance. (Round to the nearest foot and fill in the blank with a number only.) 1000 500 -500 -1000 0+00 10+00 20+00 30+00 40+00 50+00 26+00 2+00 4+00 14+00 17+00 33+00 38+00 41+00 Stations 8+00 28+00 Cubic YardA dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. What is the break-even price of the set?Safety stock in an MRP system A. is never needed. B. is used to provide flexibility to meet changing customer requirements. C. must provide a 100% service level. D. is planned at the part level, independent of the safety stock of other parts.