The purchase of a truck is $45000 and has a maintenance cost of $500 the 1st year and increases by $2000 per year. assume the salvage value at the end of 5 years is $9000 and the interest rate is 12%. Find the Net present value of one truck. Calculate the equivalent annual cost of one truck.

Please provide manual solution since the final answer is shown and cash flow diagram

The purchased price of the equipment is P12,000 and its estimated maintenance costs are P500 for the first year P1,500 for the second year and P2,500 for the third year. After three years of used equipment is replaced, it has no salvage value. Compute the present equivalent cost of the equipment using 10% interest. (capitalized cost with solution)

A company is considering buying a new piece of machinery. The initial cost of the machine is 80,000 and its salvage value is 20,000 at the end of 20 years. Annual operating cost is 18,000. What is the equivalent uniform annual cost of the machine based on 10% interest rate?

A machine was purchased for $ 8,000, with an estimated useful life of 10 years, and it has a scrap value of $ 1,000 and rate of interest = %1O. Calculate the following: The book value at the end of the ninth year using Sum of the Years- Digits method. * The book value at the end of the fourth year using constant percentage method. * The depreciation installment for the sixth year using straight line method. *

4. A piece of equipment costs $50,000 to buy. Insurance costs $1000 a year. The maintenance costs and salvage values are listed below. Which year should you turn in this equipment? Year 1: Maintenance $5,000, salvage value $40,000 Year 2: Maintenance $6,500, salvage value $35,000 Year 3: Maintenance $8,000, salvage value $30,000 Year 4: Maintenance $9,500, salvage value $25,000 Year 5: Maintenance $11,000, salvage value $20,000

A test facility setup costs 10,00,000 at the time of installation, and its scrap value is 50,000 at the end of the useful life in 10 years. Adopting a straight line method for computation of depreciation, estimate the book value of the facility at the end of five years.

Q2 A man deposited (in the bank) 500,000 ID at the end of each month for four years with 10% interest rate. The amount accumulated in the bank was used to purchase construction equipment. The salvage value of this equipment is expected to be ID2.5 M after 15 year. The maintenance. Cost is expected to be 250,000 ID p.a. Find the equivalent annual cost for the equipment.

SUBJECT: ENGINEERING ECONOMYTOPIC: DEPRECIATION SHOW THE COMPLETE AND DETAILED SOLUTION OF THIS PROBLEM. THANK YOU EXPERTS. D) A radio service panel truck initially costs P560,000. Its resale value at the end of the 5th year of the useful life is estimated at P150,000. Determine the depreciation charge for the first year using the declining balance method.

A new excavator costs $20,000 when purchased and has an annual maintenance cost of $1000. The salvage value after 5 years is $7000. The new excavator is expected to bring in $5000/year in profits. Assuming an annual interest rate of 8%, is the excavator worth buying? Draw the cash flow diagram.