Q4: A cutting machine costs 60,000$ and has an anticipated 12000$ scrap value at the end of its7 year useful life. Compute the depreciation and book values schedules for the cutting machineusing RB method.

Reducing balance method of depreciation can be defined as the method of depreciation in which book…

Answered: Q4: A cutting machine costs 60,000$ and…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The cost of a new machine is $40,000 and the new machine takes $2,000 to install. At the end of its useful life, its salvage value is $5,000. Under the modified accelerated cost recovery system (MACRS), what is the depreciable value of the new machine? a $35,000 b $37,000 c $42,000 d $40,000
An engineer must choose between two technically equivalent alternatives, A and B. Based upon the data in the table below over the 12year analysis period and an interest rate of 9%, the PW of machine A is: A B First Cost $3,000 $6,000 Annual Maintenance $500 $300 End of Useful Life Salvage Value $700 $1,000 Useful Life 5 years |15 уears O PWA=-3000-3000(P/F,9%,5)-3000(P/F,9%,10)-500(P/A,9%,15)+700(P/F,9%,5)+700(P/F,9%,10)+700(P/F,9%,15) O PWA=-3000-3000(P/F,9%,10)-500(P/A,9%,15)+700(P/F,9%,5)+700(P/F,9%,10)+700(P/F,9%,15) O PWA=-3000-3000(P/F,9%,5)-3000(P/F,9%,10)-500(P/F,9%,15)+700(P/F,9%,5)+700(P/F,9%,10)+ 700(P/F,9%,15) O PWA=-3000-3000(P/F,9%,5)-3000(P/F,9%,10)-500(P/A,9%,10)+700(P/F,9%,5)+700(P/F,9%,10)+ 700(P/F,9%,15)
For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A 15000 B- AW for machine B= 8,342 4,000 Answer the below questions : Machine B 6 20,447 6,000 5,000 Machine C 10000 4,000 1,000
Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of every year of a machine whose purchase value is 25,000$. Find the economic life of the machine assuming interest rate, i = 15%. End of Year (n) 1 2 3 4 5 6 7 8 9 10 Cost operation at the end of year ($) 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 Maintenance cost at the end of year ($) 300 400 500 600 700 800 900 1000 1100 1200 Salvage value ate end of the year ($) 9000 8000 7000 6000 5000 4000 3000 2000 1000 500
Provide step by step manual solution, given, and depreciation table for below mentioned problem. Make sure yet that your answer is the same as the given answer before sending your solution. An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Answer. P5,263.87
An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What is its depreciation expense if the company uses straight-line depreciation? Group of answer choices $200,000 $160,000 $20,000 $16,000
PLEASE SOLVE THIS TWO PROBLEMS ASAP. THANK YOU! A. A machine costs P388868 with a salvage value of P18029 is expected to last for 28537 hours in 5 years. In the first year of service it was used for 8077 hours. Compute the book value at the end of the first year. B.The cost of a certain asset is P486042 , its life is 5 years and scrap value is P9050 . Find the cost of depreciation after the first year using a constant percentage method.

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Q4: A cutting machine costs 60,000$ and has an anticipated 12000$ scrap value at the end of its 7 year useful life. Compute the depreciation and book values schedules for the cutting machine using RB method.