Maria purchased a new farm machine she will use for her second crop. She paid P30,000 for it and estimates it will last 5 years in service before she gives it to her son. How much will the machine depreciate in the first year using the double declining balance method?
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- Oliver Douglas decides to install a fuel storage system for his farm that will save him an estimated 6.5 cents/gallon on his fuel cost. Initial cost of the system is $10,000, and the annual maintenance is $25 the first year, increasing by $25 each year thereafter. After a period of 10 years the estimated salvage is $3000. If money is worth 12%, what is the breakeven quantity of fuel?Maria is a wedding planner. She purchases a laserjet printer for invitations, save-the-date postcards, etc. The laserjet costs $400. The laserjet has an expected life of 5 years; at the end of which time Maria expects a rebate of $20.00 when she turns in her old laserjet and purchases a new one. Maria uses the sum-of-the-years'-digits method to calculate depreciation.What is the annual depreciation in the first year?$What is the book value at the end of the second year?$What is the accumulated depreciation by the end of year 3?$Ronald McDonald decides to install a fuel storage system for his farm that will save him an estimated 6.5 cents/gallon on his fuel cost. He uses an estimated 20,000 gallons/year on his farm. Initial cost of the system is $10,000, and the annual maintenance the first year is $25, increasing by $25 each year thereafter. After a period of 10 years the estimated salvage is $3000. If money is worth 12%, is the new system a wise investment?
- Some time ago. Tracie purchased two acres of land costing $67,900. Today, that land is valued at $64,800. How long has she owned this land if the price of the land has been decreasing by 1.5 percent per year?Mr. Russ T. Steele sels his old vehicle for $5000 (you get more if you private sale!) and pays cash for a used (but newer vehicle) that costs $10.000. He also understands that he needs to allow for maintenance and operation costs of his vehicle. He estimates that these costs will be approximately $2000 a year and estimates that the costs will increase by $100 per year. He hopes to keep the vehicle for five years and then sell it for an estimated value of $2000. Mr. Steele has an MARR of 8%. The equivalent annual cost of the cash flow associated with his purchase is most nearly: $-1,850 $-3,100 $3,000 $3,800Andrew is considering buying a new farming tractor for his tarm. He has a choice between a John-Deere-XP tractor and a Sunflower-FT tractor. Andrew has a MARR of 4%. John-Deere-XP: First Cost $150,000. Life 10 years, zero salvage value at the end of 10 years Annual Expense (maintenance, charging, etc.) $3,000. First Cost $200,000. Life 15 years, zero salvage value at the end of 15 years Annual Expense (maintenance, charging, etc.) $3,500. Sunflower-FT For a 10-year study period, what salvage value for the extra 5 years of life for Suntiower-FT would result in that both tractors are equivalent in Present Worth? O$87,734.1 OS115.190. O S80.015.8 O$105.266. O$96,133.6
- Bob is considering buying a new farming tractor for his farm. He has a choice between a John-Deere-XP tractor and a Sunflower-FT tractor. Bob has a MARR of 6%. John-Deere-XP: First Cost: $150,000. Life: 10 years, zero salvage value at the end of 10 years. Annual Expense (maintenance, charging, etc.): $3,000. Sunflower-FT First Cost: $200,000. Life: 15 years, zero salvage value at the end of 15 years. Annual Expense (maintenance, charging, etc.): $3,500. For a 10-year study period, what salvage value for the extra 5 years of life for Sunflower-FT would result in that both tractors are equivalent in Present Worth? $96,133.6 $87,734.1 $105,266. $115,190. $80,015.8Shanice bought the car for $28,430. The value of the car is predicted to depreciate to $13,590 after 5 years. 1. If Shanice keeps the car for an additional 3 years (8 years total), predict the value of the car at the end of those 3 additional years, assuming the value continues decreasing exponentially at the same rate? $ 2. The average maintenance costs on the car are expected to be $350 the year it is purchased and increase by $50 each year after that. Use this to predict the total maintenance costs during the 3 years after the loan is paid off.Che-Che bought his brother a laptop 5 years ago which has a cost of around 25,000PhP. The laptop’s life span will last until 5 years. She has a friend which is a computer technician who advised her that the laptop’s life span could extend until 10 years if she could spend semi-annual maintenance of 100Php with a 10Php increase rate starting the next period of maintenance inspection. How much is the total future cost assuming that the money will have a rate of 2% compounded semi-annually if she decided to enjoy using her laptop beyond the expected life span upon purchasing?
- Che-Che bought his brother a laptop 5 years ago which has a cost of around 25,000PhP. The laptop’s life span will last until 5 years. She has a friend which is a computer technician who advised her that the laptop’s life span could extend until 10 years if she could spend semi-annual maintenance of 100Php with a 10Php increase rate starting the next period of maintenance inspection. How much is the total future cost assuming that the money will have a rate of 2% compounded semi-annually if she decided to enjoy using her laptop beyond the expected life span upon purchasing?PLEASE PROVIDE A CLEAR SOLUTION. THANK YOU!During the past year, Stacy McGill planted a new vineyard on 150 acres of land that she leases for $30,000 a year. She has asked you, as her accountant, to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1–5). In the next 5 years (6–10), Stacy estimates that the vines will bear grapes that can be sold for $60,000 each year. For the next 20 years (11–30), she expects the harvest will provide annual revenues of $110,000. But during the last 10 years (31–40) of the vineyard’s life, she estimates that revenues will decline to $80,000 per year. During the first 5 years, the annual cost of pruning, fertilizing, and caring for the vineyard is estimated at $9,000; during the years of production, 6–40, these costs will rise to $12,000 per year. The relevant market rate of interest for the entire period is 6%. Assume that all receipts and payments are made at the end of each year. Instructions Dick Button has offered to buy…Saul Cervantes has just purchased some equipment for his landscaping business. For this equipment, he must pay the following amounts at the end of each of the next five years: $10, 450, $ 8, 500, $9,675, $12, 500, and $11, 635. If the appropriate discount rate is 10.875 percent, what is the cost in today's dollars of the equipment Saul purchased today? Please show the excel equation