(LG 7.3) Freeport Brothers have recently purchased a process management system. Cabling installed in the plant connects data collection nodes to a central server. The costs of this system included the following: Five data collection nodes $4500 each New server $6000 60-metre cable $11.40 per metre Cabling hardware $188 Node software $1190 per node Server software $1950 10 hours of hardware installer time $20 per hour 25 hours of software installer time $60 per hour If Freeport Brothers wanted to calculate a replacement interval for such a process management system, what would be the capital cost for the first year at a depreciation rate of 30 percent?

(LG 7.3) Freeport Brothers have recently purchased a process management system. Cabling installed in the plant connects data collection nodes to a central server. The costs of this system included the following: Five data collection nodes $4500 each New server $6000 60-metre cable $11.40 per metre Cabling hardware $188 Node software $1190 per node Server software $1950 10 hours of hardware installer time $20 per hour 25 hours of software installer time $60 per hour If Freeport Brothers wanted to calculate a replacement interval for such a process management system, what would be the capital cost for the first year at a depreciation rate of 30 percent?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 13E

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