We purchase a delivery truck for $70,000 cash. We estimate the following: $70,000 $10,000 Cost Residual Value Life in years 6 years Life in miles 300,000 miles Number of tires 8 1: IF we have a fiscal year end of 12/31, and we purchase the truck in year 1 on March 1", calculate the night line method:

We purchase a delivery truck for $70,000 cash. We estimate the following: $70,000 $10,000 Cost Residual Value Life in years 6 years Life in miles 300,000 miles Number of tires 8 1: IF we have a fiscal year end of 12/31, and we purchase the truck in year 1 on March 1", calculate the night line method:

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

Give typing answer with explanation and conclusion A new production system for a factory is to be purchased and installed for $154982. This system will save approximately 300,000 kWh of electric power each year for a 6-year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 15% per year, and the salvage value of the system will be $9668 at year 6. Using the PW method to analyzes if this investment is economically justified A- calculate the PW of the above investment and insert the result below.
Using the table in Exercise 10, calculate the net present value for each project shown below at the end of six years and determine which would be the better decision for Mike’s Camping Supply. Assume that Project 1 can be sold for $15,000 at the end of the sixth year. Project 1 Project Cost $160,000 Cost $150,000 Minimum desired rate of return 12% Minimum desired rate of return 12% Expected useful life 7 years Expected useful life 6 years Yearly cash flows to be received: Yearly cash flows to be received: Year 1…
Octavia Bakery is planning to purchase one of two ovens. The expected cash flows for each oven are shown below. MARR is 8% / year. Initial Investment Estimated Life End of Life Salvage Annual Income Annual Expense Part a Model 127B $50,000 Part b 10 $10,000 $19.400 $10,000 Your answer is correct. Model 334A $80,000 5 Your answer is partially correct. $0 What is the discounted payback period for Model 127B? $26,000 $6,000 Round entry to two decimal places. The tolerance is ±0.02. eTextbook and Media What is the discounted payback period for Model 334A? Is the DPBP greater than the planning horizon? No V Round entry to two decimal places. The tolerance is ±0.02. 7.18 years 5.10 years Attempts: 1 of 3 used
A highway department must select one of two pavement repair options for a 10-mile section of a four-lane highway. The analysis period is 8 years, and the interest rate is 8%. Option 1 Option2 Initial cost $5,300,000 $3,000,000 Annual cost 300,000 400,000 Lifetime 8 years 4 years a) Form the cash flow table for the alternatives and the incremental investment, using standard sign convention. b) Using present worth analysis, find the best repair option. c) Using annual cash flow analysis, find the best repair option. d) Using the incremental rate of return analysis, find the best repair option. e) Using incremental benefit-cost ratio analysis, find the best repair option
A delivery truck has a book value of $8,000 in year 5. The purchase price of the truck is $40,000. If the minimum acceptable rate of return is 20%, what is the equivalent annual capital cost of the truck in year 9?
A firm is trying to decide between two types of trucks, one a conventional gasoline vehicle and the other a diesel powered. The following information is available Gasoline $28,000 Initial investment Useful life Salvage value Operating cost per mile a. With interest at 6% per year, determine the annual mileage at which the two trucks are equivalent b. For 15,000 miles per year in travel, which truck should be recommended? Click the icon to view the interest and annuity table for discrete compounding when/=6% per year 5 years $8,000 $0.47 a. The annual mileage at which the two trucks are equivalent is smiles (Round to the nearest whole number). Diesel $22,000 4 years $4,000 $0.39
The table given below lists the relevant cost items for a specific system purchase. The operating expenses for the new system are $10,000 per year, and the useful life of the system is expected to be five years. The salvage value for depreciation purposes is equal to 25% of the hardware cost. Cost Item Cost Hardware $160,000 Training $15,000 Installation $15,000 a) What is the Book Value (BV) of the device at the end of year three if the Straight Line (SL) depreciation method is used? b) Suppose that after depreciating the device for two years with the SL method, the firm decides to switch to the double declining balance depreciation method for the remainder of the device's life (the remaining three years). What is the device's BV at the end of four years?
Your company buys a piece of equipment for a cost of $225K including tires. Freight costs are $4K. Tire replacement costs $25K and lasts for 4000 hrs. The equipment has a total life of 10,000 hours and the plan is to use it 1000 hours per year. Fuel costs $2.35 per gallon and equipment usage is 5 galhr. The equipment will be used for 5 years and sold for $100K Company overhead and interest is 20%. Determine the total Ownership and operating cost. Select the right option with explanationbas options are: - 80$ - 81$ -82$ -83$ -84$ -85$ -86$ -87$ -88$ -89$ -90$
Please view the following video before answering this question. Video Solution: 11.01-PR007 A pipeline contractor can purchase a needed truck for $44,000. Its estimated life is 6 years, and it has no salvage value. Maintenance is estimated to be $2,100 per year. Operating expense is $60 per day. The contractor can hire a similar unit for $130 per day. MARR is 7%. Click here to access the TVM Factor Table Calculator Part a How many days per year must the truck's services be needed such that the two alternatives are equally costly? days Carry all interim calculations to 5 decimal places and then round your final answer up to the nearest day. The tolerance is 14. Attempts: 0 of 3 used Save for Later Submit Answer
es A forklift will last for only 4 more years. It costs $6,900 a year to maintain. For $24,000 you can buy a new lift that can last for 12 years and should require maintenance costs of only $3,900 a year. a-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 5% per year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a-2. Should you replace the forklift? b-1. Calculate the equivalent cost of owning and operating the forklift if the discount rate is 13% per year. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-2. Should you replace the forklift? a-1. Equivalent cost a-2. Should you replace the forklift? b-1. Equivalent cost b-2. Should you replace the forklift?
Hiren Add explanation
Provide neat and easy to understand (preferrably handwritten) complete solution with explanation Answer both questions please. I will certainly upvote