The project costs 1,40,000 and has no scrap value after five years. It is depreciated on straight line method. The outstanding investment in the project is as follows, At the end of first year 30,000 At the end of second year 50,000 70,000 At the end of third year At the end of fourth year At the end of fifth year 90,000 1,10,000 3,50,000

The project costs 1,40,000 and has no scrap value after five years. It is depreciated on straight line method. The outstanding investment in the project is as follows, At the end of first year 30,000 At the end of second year 50,000 70,000 At the end of third year At the end of fourth year At the end of fifth year 90,000 1,10,000 3,50,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A machine can be purchased for $284,000 and used for five years, yielding the following net incomes. In projecting net incomes, double-declining depreciation is applied using a five-year life and a zero salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 19,000 $ 35,000 $ 67,000 $ 40,000 $ 126,000 Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.)
You invested $100,000 in a project and received $40,000 at n = 1, $40,000 atn = 2, and $30,000 at n = 3 years. You need to terminate the project at the end of year 3. Your interest rate is 10%; what is the project balance at the time of termination?(a) Gain of $10,000(b) Loss of $8,039(c) Loss of $10,700(d) Just break even
811
5-21. Determine the FW of the following engineering project when the MARR is 10% per year. Is the project acceptable? (5.4) Proposal A Investment cost $15,000 Expected life 8 years Market (salvage) value" -$2,500 Annual receipts $8,800 Annual expenses $5,800 a A negative market value means that there is a net cost to dispose of an asset.
Consider the following operating and maintenance costs of a new machine whose first cost is $ 86,000 with a useful life of 6 years and its salvage value is $ 14,000 whatever its age is. The interest rate is 6%, compounded annually. Find its economic life. Year 1 2 3 4 5 6 O&M Costs, $ 5,000 7,000 9,000 11,000 13,000 15,000
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $325,000 investment for new machinery with a three-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y Project Z Sales $ 370,000 $ 296,000 Expenses Direct materials 51,800 37,000 Direct labor 74,000 44,400 Overhead including depreciation 133,200 133,200 Selling and administrative expenses 26,000 26,000 Total expenses 285,000 240,600 Pretax income 85,000 55,400 Income taxes (38%) 32,300 21,052 Net income $ 52,700 $…
please answer within 30 minutes.
A tunnel to transport water initially cost $1,000,000 and has expected maintenance costs that will occur in a 6-year cycle as shown below, assume MARR is 5% per year. End of Year: 2 4 6. Maintenance: $35,000 $35,000 $35,000 $45,000 $45,000 $60,000 Compute the Equivalent Annual Cost of the maintenance. Hint: Don't insert the negative sign Compute the Capitalized Cost? Hint: Don't insert the negative sign
[The following information applies to the questions displayed below.} Project Y requires a $313,500 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Project Y $ 380,000 170, 240 78, 375 27,000 $ 104,385 3. Compute Project Y's accounting rate of return. Project Y Numerator: Accounting Rate of Return Denominator: Accounting Rate of Return 0
The First cost of a passenger bus is ₽800,000. Its estimated life is 4 years with no salvage value.The operating cost per year of 300 days of operation are as follows: Tires, ₽24,000; gasoline, 60liters per day at ₽15 per liter; Oil, ₽80 per day; maintenance and repair, ₽40,000; labor ₽800 perday; miscellaneous expense, ₽18,000; depreciation, sinking fund at 10%. If the averagepassenger fare is ₽3.50 for each passenger one way and expected profit or return is 15%determine the minimum average number of passengers that should be transported each day.Use the Annual Worth method and future worth method. Please also include the solution of finding the annual income.
A project with a life of 9 has an initial fixed asset investment of $24,780, an initial NWC investment of $2,360, and an annual OCF of -$37,760. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 13 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice O $-40,750.87 O о о $ 45,040.43 $-42,895.65 $-36,461,30 $-24,458,41
Gomez is considering a $200,.000 investment with the following net cash flows. Gomez requires a 15% return on its investments. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Net cash flows $76, 800 $59,000 S100,000 $173,000 $41,000 (a) Compute the net present value of this investment. (b) Should Gomez accept the investment? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar.) Present Value of 1 at 15% Present Value of Net Cash Flows Net Cash Year Flows Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Required B > K Hequirod A