Peller machine losses 10% of its value each year. The machine costs P 2,000 originally. Find the book value at the end of 5 years. a. P1,312.20 b. P1,1180.98 c. P1,620.00 d. P1,458.00
Q: The cost of equipment is P 500,000.00 and the cost of installation is P 30,000.00. If the salvage…
A: Cost of equipment =P 500,000 Installation cost =P30,000 Salvage value after 5 years=10% of the cost.…
Q: 3. A Machine costs $50,000 to purchase. Salvage value of the machine after 5 years = $7000.…
A: Equivalent uniform annual cost (EUAC) helps an entity determine the uniform cost per year on…
Q: You are offered a device that uses machine learning to improve performance. You expect it to produce…
A: Monthly cash flows of the machine are- $10000, $40000, $70000 and $100000.The discount rate is 12…
Q: The asset appears always at original cost in case depreciation is credited to provision for…
A: The asset appears always at original cost in case depreciation is credited to provision for…
Q: Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board…
A: Given information Year 0: Initial investment of $37,000 Year 1-7: Operating and maintenance expenses…
Q: 4-85: Mark Johnson saves a fixed percentage of his salary at the end of each year. This year he…
A: The stock market broadly refers to the collection of exchanges and other venues where the buying,…
Q: Marco has an asset valued $100 now. There is a 20% depreciation rate. Landing the asset is possible,…
A: Correct: By doing nothing, Marco can consume $68 now and $80 later. However, the statement about…
Q: Take a Load Off Hotels is considering the construction of a new hotel for $12,000,000. The expected…
A: Given: construction of hotel=$12,000,000 Expected life=6 years Revenues per year=$12,400,000 Total…
Q: You and your business partners are considering applying for a franchise. If approved, you expect…
A: Economic term uses the word "opportunity cost" to describe the worth of what you must forgo in order…
Q: Machine X has an intial cost of $10,000. It is expected to last 12 years, to cost $200 per year to…
A: The initial cost of the machine (FC)=$10,000 Life =12 years Annual maintenance cost =$200 Salvage…
Q: New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its…
A: Cost of sprayer=$830,000Installation Cost=$22,500Salvage…
Q: Ilana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.08 million. The…
A: A financial statistic called Net Present Value (NPV) serves as a financial future vision for making…
Q: 4) In order to make a replacement decision, a firm calculated the equivalent annual cost of owning…
A: Annual Cost is the cost of utilizing the estimated units of cost of living in a particular unit. It…
Q: To calculate the net present value, convert all future and repeated cash flows into present value.…
A: In economics, present value refers to the current value of a future stream of cash flows. Net…
Q: 2 (10 points) Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5…
A: Given : Initial Book Value = $40000 Useful Life = 5 years Salvage value=$5500
Q: ! Required information A company just purchased an intelligent robot, which has a first cost of…
A: Approach to solving the question:This question requires calculating the book value of a depreciating…
Q: Bird Wing Bedding can lease an asset for 4 years with payments of $19,000 due at the beginning of…
A: A lease rate is paid for renting an asset, such as real estate or a car, for a certain period. The…
Q: You saw a product sells for $140 on the price tag and costs $100, the Mark-up (%) for this product…
A: Selling price is the face value or tag value of the product. whereas the actual monetary value…
Q: 2. A manufacturing company purchased an equipment for methods improvement for P 53,000. Paid P 1,500…
A: The value of an asset depreciates over time due to use, deterioration, or obsolescence. This…
Q: Note: Good A B C D E F G H I J Nominal rate 10% 5% 0% 30% 2% 2.5% 15% R0.50/unit 40% R2.50/unit…
A: We need to take the average of all the nominal tariff rates without considering the import values.…
Q: A bottle of wine costs $14.00 and yields 5 ‘by the glass’ servings. To have a 25% FC what would I…
A: Price can be calculated by using the following formula.
Q: Cost component Alpha Beta Charlie development 100,000 immediately 150,000 year 1 10,000…
A:
Q: A chemical plant is considering installing a new water purification system that costs $21 500. The…
A: Given information Initial cost=21500 Salvage value determined by 20% declining balance method Annual…
Q: 1-5 Calculate financial net income AFIT and net cash flow AFIT for year 3 only. Your Time 0…
A: Cash flow refers to the movement of money into and out of a business, organization, or individual's…
Q: The White Swan Talc Company paid $120,000 for mining equipment for a small talc mine. The mining…
A: Under the SYD technique, the depreciation rate for every year is determined as the number of years…
Q: A machine having a first cost of P60,000.00 will be retired at the end of 8 years. Depreciation cost…
A: Depreciation is a term used in economics to describe how much value an asset loses as a consequence…
Q: A group of companies decided to acquire a state-of-the-art production machine that will cost…
A: Given information: Cost of machine = $300,000Installation charges = $6500The rate of depreciation =…
Q: 6) A company is considering the purchase of a new automated assembly machine to increase its…
A: The initial cost of the machine = $480,000. Expected to increase the company's annual revenue by =…
Q: Use the values in the table below to answer the following questions. Q TC ATC MC 1 5.31 6 22.8 7…
A: TC means total cost, ATC means average total cost, and MC means marginal cost. TC will be calculated…
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: Margaret has invested in a project that will cost $17000 upfront and will provide annual revenue of…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Cellphone cost P12,000 new. It is estimated to have a life of 5 years with a salvage value at the…
A: Depreciable Value = Cost - Salvage Value = P12000 - P1000 = P11000
Q: Michael Wittry has been investing in his Roth IRA retirement account for 24 years. Five years ago,…
A: Here it is clear that there are two investments. To calculate the fraction of amount in respect to…
Q: A machine was bought 10 years ago for 30,000 it could be sold today for 10,000 next year for 8,000…
A: Current Value of machine = 10000 Value after 1 year = 8000 Value after 2 years = 5000 Value after 3…
Q: Stritch operates a fleet of vans and is considering whether to replace the vehicles on a L or 2 year…
A: *Hi there , as you have posted multiple questions following our guidelines we can only solve one…
Q: agree rent Whas On renting my property of $10000 my دا for а principal over 5 years, r = 3% annually…
A:
Q: Machine that cost $150,000 and on which $120,000 of accumulated depreciation has been recorded was…
A: Given is the following information in the question: Cost of machine = $150000 Accumulate…
Q: 37. Vince purchased a 2008 used car for $15,300. This make and model used car straight line…
A: Vince purchased a car for $15,300 and the car reduces its value to zero in 8 years due to…
Q: 2) The first cost of a machine is $60,000. The machine's end of year salvage value over the next…
A: PLEASE FIND THE ANSWER BELOW.
Q: ASB is considering leasing a new machine. The lease calls for 9 payments of $1,022 per year with the…
A: Lease is a legal document that includes conditions under which particular property is to be used and…
Q: The maintenance foreman of a plant was reviewing his maintenance records found that one of the…
A: A financial concept called equivalent annual uniform cost (EAUC) is used to compare various…
Q: Lamar Company is studying a project that would have an eight-year life and require a S1.600,000…
A: The payback period is the time you need to recover the cost of your investment. In simple terms, it…
Q: 2. A company is planning to install a new automated concrete block making machine. Four different…
A: Present worth (PV), also known as present discounted value, refers to the current value of an…
Q: A contractor imported a bulldozer paying 250,000 to the manufacturer. Freight and insurances cost…
A: Book Value refers to the value of an asset after its liabilities have been taken out. The…
Peller machine losses 10% of its value each year. The machine costs P 2,000 originally. Find the book value at the end of 5 years.
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- F. The College of Engineering is planning to put up its own laboratory building Two proposals being considered are: AThe construction of the building now to cost P4 000 000 B The construction of a smaller building now to cost P3 000 000 and atthe end of d years, an extension to be added to cost P2 000 00O CO3 12. By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected? a. P 150,000 b P 169 000 c.P130,000 d. none of the above CO3 13. What is the effective rate of 12% compounded monthly2 b. 10 45% 14. What is the effective rate of 12.5% compounded annually? b. 11.45% a 11.68% c 21% d. none of the above | Co1 a 12.68% 15. 1f you are investing your money which is belter for the two conditions stated above? a 12% compounded monthly c 31% d. none of the above. CO3 13% annually b. 12.5% compounded C. Compounded | d none of the above annuallyA Startup is considering buying a $300,000 prece of equipment. If it puranases the equipment, to will take a loan for the entire amout; the interest on the loan is 3%. and the luan will be repond in 5 equal end of year payments. The Startup estimaks that the equipment would generall an additional $160,000 of revenue each year. At the end of 5 year, the equipment would have a salvague. value of $20,000. The tax rate is 25% Assuming a planning horizon of 5 years. that the equipment as depreciated using MACKS (3-year property class) and that the medical practice uses MARK of 7%. an after tax (a) Compute the Present Worth and determine whether the startup Should invest in the equipment (b) Re - compute the present worth if there exists a cl. inflation / year. would descision your change?9. A machine costs $20,000 today and has an estimated scrap cash value of $2050 after ten years. Inflation is 8% per year. The effective annual interest rate earned on money invested is 6%. How much money needs to be set aside each year to replace the machine with an identical model ten years from now?
- A manufacturer purchased $15,000 worth of equipment with a useful life of six years. Assuming 12% interest, the equivalent uniform annual cost of the equipment is _________. A. $1,625 B. $1,252 C. $2,500 D. $3,648 E. $5,049 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.4. A special-purpose machine is to be purchased at a cost of $30,000. The following table shows the expected annual operating and maintenance cost and the salvage value for each year of service: Year of Service O&M Cost 1 2 3 4 5 $5,000 $6,500 $10,000 $12,500 $14,800 Market Value $25,800 $16,000 $10,000 $5,000 $0 a) If the interest rate is 12%, what is the economic service life for this machine? b) The old machine (Defender) has remaining life of 3 years The current market value of it is $28,000 and the annual operational cost is $5,500. The value of the old machine is reduced by 5% each year while the operational costs increase by $1000 each year. Determine the economic service life of the old machine at an interest rate of 12%. c) If the old machine is to be replaced with the new machine when is the best time to do so?15. A heavy construction company purchased an excavator for $540,000.00. Operating and maintenance costs will be $36,000.00 for the first year and increase by $30,000.00 each year. The first year the firm will have an income of $660,000.00 and the income will decrease by $5,000.00 each year. The salvage value of the excavator will be $150,000.00 in year 10. Calculate the rate of return for the excavator using net present worth analysis. Calculate the rate of return using equivalent uniform annual worth analysis.
- 12. A recapping plant is planning to acquire a new diesel engine set to replace its present unit which they run during power interruptions. The new diesel set would cost $135,000 with a five years life and zero residual value. Annual operating cost would be $150,000. On the other hand, the present generating set has a remaining life of 5 years. Its present value is $7,500 but has a zero residual value after 5 years. Annual operating costs is placed at $187,500. If MARR=10%, which is more profitable – to buy the new generator set or retain the present set? Calculate the difference in annual costs between the two alternatives. mpanu ic conridering two alternatives with regards to an eguinment which it needs The5. A small branch office of a contracting company is planning to purchase a new laser printer. Three vendors have supplied cost, useful life, and estimated salvage value data, shown in the following table. The MARR is 12%. Investment (first) cost Annual service cost Salvage value Useful life A $800 $180/yr $200 5 years Laser printer B $1,400 $150/yr $825 5 years C $900 $170/yr $100 5 years Draw cash flows for these alternatives. If the expected annual saving in labor is $500 regardless of which machine is purchased, what are the annual equivalent values of these alternatives.3. The annual worth method An office supply company has purchased a light duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the company’s revenue by $10,000 annually, whereas the associated operating expenses are expected to be $3,000 per year. The truck’s market value is expected to decrease by $2,500 each year it is in service. If the company plans to keep the truck for only 2 years, what is the annual worth of this investment? The MARR = 18% per year
![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)