If an asset is book-depreciated by the DDB method over a 5-year period, how long will it take to reach its salvage value if the estimated salvage is 25% of the first cost?
Q: A delivery car had a first cost of $34000, an annual operating cost of $18000, and an estimated…
A: The annual worth ascertains the annual cash flow throughout the investment period which is…
Q: A specialty concrete mixer used in construction was purchased for $300,000 7 years ago. Its annual…
A: A business system is structured to link all the complex components and interconnected measures of an…
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: Required information A company just purchased an intelligent robot, which has a first cost of…
A: The first cost of the robot is = $296,000The selling cost/Salvage value is = $200,000Years = 4To…
Q: For equipment that has a first cost of $10,500, the estimated operating costs and year-end salvage…
A: The initial cost P=11500. The salvage value and annual cost change each year. The table below shows…
Q: Nuclear safety devices installed several years ago have been depreciated from a first cost of…
A: To perform an after-tax annual worth (AW) based replacement study, we need to consider the after-tax…
Q: A piece of equipment has a first cost of $399,000. Annual operating and maintenance cost are…
A: Given Information Original Cost of equivalent = $399,000and operations and maintainace cost =…
Q: A delivery car had a first cost of $32,000, an annual operating cost of $13,000, and an estimated…
A: Annual worth refers to the equivalent uniform annual value of all the costs and income during a…
Q: Complete each problem in excel. Submit your excel worksheet in EXCEL format so I can see how you…
A: Given The first cost of the equipment =$620,000 The estimated useful life of the equipment =11…
Q: the 50,000 from the depreciation formula, is it the annual profit or is it the salvage value
A: The monetary worth of an asset falls over time because of use, wear and tear or obsolescence. This…
Q: What is the depreciation deduction dk and book value BVk, for 0 ≤ k ≤ 5, using each of the following…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subpart for you…
Q: The purchasing price of the second-hand bulldozer is $150,000. It will have 8 years service life…
A: Purchase price of bulldozer = $150000 Life of bulldozer = 8 years Salvage value = $10000 First-year…
Q: the 50,000 from the deprecation formula, is it the annual profit or is it the salvage value?
A: First of all, we have to know the terms depreciation expense, salvage value and rate of return.…
Q: For equipment that has a first cost of $13,000, the estimated operating costs and year-end salvage…
A: Economic service life (ESL) refers to the useful life of an asset that minimizes the equivalent…
Q: A machine costs P8000 and an estimated life of 10 years with a salvage value of P500. What is its…
A: The straight-line method is a method for calculating the book value of an asset over time, by…
Q: there are three machines in the mechanicle angineering lab A ,B , and C and need to be evaluted…
A: Given: Machine A The first cost of = $4,500 An annual operating cost of = $900 Salvage value of =…
Q: A machine cost P1,000 and has a salvage value of P100 after a life of five years. Using the double…
A: The double-declining balance depreciation procedure is a sped-up depreciation method that counts as…
Q: An asset was purchased 5 years ago at a price of $52,000. It was expected to be in service for 8…
A: Here's how to calculate the selling price to recover the invested capital for the asset:1. Calculate…
Q: A certain equipment costs P X now and has a salvage value of P 40,000 at the end of 23,000 hours of…
A: Given the information:; Equipment cost = X Salvage value = 40000 Book value after one year = 360000…
Q: Last month, HighPower, which specializes in wind power plant design and engineering, made a capital…
A: The taxable income increases to the equal value of DR, since the MACRS book value at year 5 becomes…
Q: You, an engineer, and an attorney friend, Rob, started a small business 3 years ago to do energy…
A: Cost of new equipment = $20,000 Book value = $10,000 Difference in cost of new equipment and value…
Q: Required information A company just purchased an intelligent robot, which has a first cost of…
A: A continual, permanent, and steady decline in the book value of fixed assets is referred to as…
Q: machine has a cost of Php 13391.00. It has a salvage of Php 2680.00 and an economic life of 10…
A: Sum of year's digit technique : It is variety of the "Lessening Balance Method". For this situation,…
Q: ompany RLM purchased a machine that cost $60,000 and will last 6 years. A salvage value was not…
A: Given the information: The cost of the machine = $60000 Time period = 6 years Salvage value = zero
Q: What is the book value of equipment purchased 7 years ago for $13.587 if it is depreciated using the…
A: Sum of Years Digit Method Book value at the end of year 7 is 1482.22 $
Q: ! Required information For equipment that has a first cost of $19,000, the estimated operating costs…
A: The given data are executed in excel.Therefore, the economioc service life ESL will be 5 years…
Q: A piece of machinery has a cost basis of $50,000 and salvage value will be $5000 after 9000 hours of…
A: Allowed depreciation refers to the depreciation that a business is allowed to deduct from its tax…
Q: Your self-employed friend tells you that he is able to legally use depreciation write-off on his…
A: Depreciation is a reduction in the fixed assets' book value. Depreciation is the process by which…
Q: Create a cashflow diagram or table. A European manufacturing company has new equipment with a first…
A: Under the SYD method, the depreciation rate % for each year is computed as the number of years in…
Q: Nuclear safety devices installed several years ago have been depreciated from a first cost of…
A: Initial Cost = 200000 The device can be sold for = 15000 Upgradation cost = 9000 Operating Expenses…
Q: An asset costs $14300. What declining-balance depreciation rate would result in the scrap value of…
A: Given: The first cost of the asset P =$14300 Scrap value after 4 years (F)=5820 Formula to find book…
Q: Required information Nuclear safety devices installed several years ago have been depreciated from a…
A: Annual worth, often denoted as AW, is a financial concept used to evaluate the economic equivalence…
Q: A machine that cost $120,000 3 years ago can be sold now for $51,500. Its market value is expected…
A: Annual worth shows the costs and benefits in terms of cash for a good, asset or investment over the…
Q: Required information A company just purchased an intelligent robot, which has a first cost of…
A: Given -: First Cost = 278,000 recovery life = 5 years According to the MACRS schedule, the…
Q: Big W Construction purchases a dump truck to use for its upcoming projects. The purchase price…
A: Given information Big W construction company purchase dump truck Initial cost=$278000 Tire…
Q: What is the machine’s book value after 5 years of depreciation? If the machine is sold for $20,000…
A: Straight-line depreciation is the most commonly used and straightforward depreciation method for…
Q: depreciation is $604 million and gross value is $800 million Find the value of net value
A: The information being given to us is as follows:- Depreciation = $604 million Gross value = $800…
Q: Required information A company just purchased an intelligent robot, which has a first cost of…
A: Given: The first cost of the robot is = $278,000 The selling cost/Salvage value is = $200,000 Years…
Q: quipment associated with manufacturing small railcars had a first cost of $170,000 with an expected…
A: Depreciation as per straight line method =[cost-salvage]/useful life = […
Q: date period In Santa Barbara, the sales tax is 7.55%. What would be the final cost of a surfboard if…
A: It can be defined as the final amount of money a buyer pays to the seller. It encompasses all types…
If an asset is book-
over a 5-year period, how long will it take to reach
its salvage value if the estimated salvage is 25% of
the first cost?
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Required information For equipment that has a first cost of $10,500, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 -1,000 7,000 2 -1,200 5,000 3 -1,300 4,500 4 -2,000 3,000 5 -3,000 2,000 Determine the economic service life ESL, at i= 10% per year using factors. The economic service life ESL, is 4 O years with the AW $- 5982.12 =The average car depreciates in value about 15% per year. Suppose you buy a silver Cherolet Cruze LTZ worth $26,000 (and made no down payment). What is the value of the car if you bought it 4 years ago?Rebecca is moving away from New York City for her new job, so she must buy a car rather than rely on public transit. The new car she is considering will cost $ 18,000 to buy, $ 1,500 per year to insure, and $ 500 per year for maintenance after the 3-year warranty expires. She would keep the car for 7 years when it will have a salvage value of $ 7,000. She has found a 2-year-old car that is the same model for $ 13,000. The 3-year warranty is transferrable, so the annual maintenance cost of $500 starts in year 2. Because the car is less valuable, insurance is $300 per year less than for the new car. After 5 years, the vehicle will be 7 years old and will have the same salvage value of $ 7,000. Rebecca is ignoring costs for fuel, oil, tires and registration, because the two vehicles will have the same costs. If her interest rate is 9%, how much cheaper is the used car (difference of EAC of two vehicles)
- Stahmann Products paid $350,000 for a numerical controller and had it installed at a cost of $50,000. The recovery period was 7 years with an estimated salvage value of 10% of the original purchase price. Stahmann sold the system 4 years after it was purchased for $45,000. State the numerical values for the following: remaining life at sale time, market value at sale time, and book value at sale time if 65% of the basis had been depreciated. The remaining life at sale time is years. The market value at sale time is $ . The book value at sale time if 65% of the basis has been depreciated is $ .An asset with a first cost of $13,000 is depreciated using the Modified Accelerated Cost recovery System (MACRS) over a 5-year period. The cash flow before taxes (CFBT) is estimated at $10,000 for the first 4 years and $5000 thereafter as long as the asset is retained. The effective tax rate is 33%, and the money is worth 11% per year. In present worth dollars, how much of the cash flow generated by the asset over its recovery period is lost to taxes? The present worth (PW) of CFBT is determined to be $ The present worth (PW) of CFAT is determined to be $ The difference between the two present worth (PW) values is determined to be $A furniture company buys a forest to obtain wood for manufacturing furniture. The related costs to theforest are:Cost of buying the forest = $730,000,000Wood expected to be extracted = 400,000 tonCost of restoration of the forest = $120,000,000Residual/salvage value = $233,000,000Trees cut in year 1 = 107,000 tonsTrees cut in year 2 = 89,000 tonsCompute the depletion rate and depletion charge for the first 2 years.
- Required information Nuclear safety devices installed several years ago have been depreciated from a first cost of $200,000 to zero using the Modified Accelerated Cost Recovery System (MACRS). The devices can be sold on the used equipment market for an estimated $15,000, or they can be retained in service for 5 more years with a $9000 upgrade now and an operating expenses (OE) of $6000 per year. The upgrade investment will be depreciated over 3 years with no salvage value. The challenger is a replacement with newer technology at a first cost of $40,000, n=5 years, and S=0. The new units will have operating expenses of $7000 per year. Use a 5-year study period, an effective tax rate of 41%, an after-tax minimum acceptable rate of return (MARR) of 12% per year, and an assumption of classical straight line depreciation (no half-year convention) to perform an after-tax AW-based replacement study. The annual worth of the defender is determined to be $[ The annual worth of the challenger is…Required information For equipment that has a first cost of $17,000, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 -1,000 7,000 2 -1,200 5,000 3 -1,300 4,500 4 -2,000 3,000 5 -3,000 2,000 Write the PMT function to determine AW for year 4, if net operating costs are entered into cells B2 through B6. (Please upload your response/solution using the controls below.)Office equipment whose initial cost is $100,000 has an estimated actual life of 6 years, with an estimated salvage value of $10,000. Prepare tables listing the annual costs of depreciation and the book value at the end of each 6 years, based on straight-line, sum-of-years’-digits, and MACRS depreciation. Please use spreadsheet functions for the depreciation methods.
- Determine the ESL, at i = 15% per year for equipment that has a first cost of $8,000 and the estimated operating costs and year-end salvage values shown below Year Operation Cost Salvage Value $ per Year $ 1 -1000 2 -1200 3 -1300 4 -2100 1 year 2 years 3 years 4 years 6000 5000 3000 2000A textile processing company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it with a proprietary oxypure process. The relevant information for each process is shown. Use an interest rate of 15% per year to perform the replacement study. Additionally, write the PMT functions that display the information necessary to make the decision. Process Current Oxypure Original cost 6 years ago, $ 450,000 — Investment cost now, $ — 600,000 Current market value, $ 25,000 — Annual operating cost, $/year 190,000 70,000 Remaining life, years 3 10 Salvage value, $ 0 50,000A specialty concrete mixer used in construction was purchased for $300,000 7 years ago. Its annual O&M costs are $105,000. At the end of the 8-year planning horizon, the mixer will have a salvage value of $5,000. If the mixer is replaced, a new mixer will require an initial investment of $375,000 and at the end of the 8-year planning horizon, the new mixer will have a salvage value of $45,000. Its annual O&M cost will be only $40,000 due to newer technology. Use an EUAC measure and a MARR of 15% to see if the concrete mixer should be replaced if the old mixer is sold for its market value of $65,000. Solve, a. Use the cash flow approach (insider’s viewpoint approach). b. Use the opportunity cost approach (outsider’s view point approach).
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)