Ederly Quarry sells a wide variety of cut limestone for residential and commercial building construction. A recent quarryexpansion cost $2.3 million and added an estimated 90,000 tons of reserves.YearVolume, 1000 TonsPrice, $ per Ton110752970315704107651885Estimate the cost depletion allowance for the next 5 years, using the projections made by the owner, John Ederly.The cost depletion allowance for the next 5 years is estimated to be $

Cost depletion is one of two accounting methods utilized to allocate the costs of extracting natural…

expansion cost $2.3 million and added an estimated 90,000 tons of reserves. 3 15 70 Year Volume, 1000 Tons Price, $ per Ton 1 10 75 2 9 70 4 10 76 5 18 85 stimate the cost depletion allowance for the next 5 years, using the projections made by the owner, John Ederly he cost depletion allowance for the next 5 years is estimated to be $ [

expansion cost $2.3 million and added an estimated 90,000 tons of reserves. 3 15 70 Year Volume, 1000 Tons Price, $ per Ton 1 10 75 2 9 70 4 10 76 5 18 85 stimate the cost depletion allowance for the next 5 years, using the projections made by the owner, John Ederly he cost depletion allowance for the next 5 years is estimated to be $ [

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 5 A construction store sells a wide variety of cut limestone for residential and commercial building construction. A recent quarry expansion cost $2.9 million and added an estimated 100,000 tons of reserve. Estimate the cost depletion allowance in year 2 using the projections made by the owner. Year 2 3 14 Volume, 1000 tons Price, $ per ton $ 1.42 million 10 15 15 18 75 70 70 75 85 $0.52 million O $1.24 million O $1.94 million
QUESTION 1 A new machine is to be purchased for $200,000. The company believes it will generate $75,000 annually in revenue due to the purchase of this machine. The company will have to train an operator to run this machine and this will result in additional labor expenses of $25,000 annually. The new machine will be depreciated using 5 years MACRS, even though the life of the project is 7 years, and the salvage value is estimated to be $0 at the end of year 7. The tax rate is 40% and the company's MARR is 15%.
5
Calculate the depreciation value during the first year using the Declining Balance method of a CCTV system worth $20000 with no salvage value using 200% declining balance which depreciates over 5 years. a. $10000 O b. $12000 O c. $6000 d. $8000
Calculation of break-even point for mask production/sale in the vicinity. Can a break-even point be achieved in a period of three months by selling less than 200 masks per month?
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A. When the price =50000-500(Demand) and the variable cost-$3000 per unit, the value of demand that maximize the profit B. The installation cost of a machine is $10000 with estimated life of 10 years and selvage value of $2000 at the end of the 10th year. What will be the annual depreciation cost in the fourth year (using straight line method)? C. Suppose that the initial cost of a certain operation is $25000 at the beginning of the first year. The expenditures are expected to be ($1500) at the end of the first year, $1000 at the end of second year, and to increase by $500 at the end of each of the next 4 years. The salvage value at the end of the 8th year is $1500. Draw the cash flow diagram. D. The Present worth (PW) of 5 annual payment of $10000 paid at the end of the each of the 5 years with interest rate of % 16 compounded quarterly is. E. The Future worth at the end of the 4 years (FW4) of the four $2000 annual payment paid at the beginning of each of the 4 years (shown in Figure…
uppose that you purchased a HVAC system five years ago for $75, 000. The O&Mcosts are $15, 000 this year and are expected to increase by $1, 000 each year for the next five yearsthen remain the same for the following years.The current salvage value of the system is $15, 000; salvage value after one year is estimated tobe $12, 000; after two years, $11, 000; after three years, $10, 000; after four years, $9, 000; and so on.A new industrial HVAC system is available for purchase at a price of $95, 000, including instal-lation. The market value of the new system will decrease at a rate of 15% each year. The O&Mcosts are expected to be $1, 000 in the first year, and will increase at a rate of 20% each year. Themaximum service life of the new system is 10 years. Assume that your company uses an interestrate of 10% for all project evaluations.(a) Find the remaining economic life of the currently owned asset.(b) What is the economic service life of the new system?(c) Use the…
Subject: Engineerings Economics Topics:1. Declining Balance Method (DBM) Please help me to solve this in step by step manner. Make sure to analyze the question well.BOX your final answer Question: A machine cost P160,000 and is estimated to have a life of 6 years. If the rate of depreciation is 25%, find the salvage value using the declining balance method.Please use the following sources AND THE FORMULA below:
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