Answered: What would be the book value after…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

A 3-D printer initially costs P 11,737 and has a salvage value of P 897 at the end of its economic life of 8 years. Assume interest rate of 0.145 annually, determine its book value at the end of the year 4.
E1
Based on the straight-line method, determine the depreciation table for a mini-van that you bought for $35,000. [The expected salvage price after five years is $10,000.] If you sold the car after two years for $20,000, how much gain (or loss) will you make?
in a replacement analysis, the following is known about the challenger: the initial investment is $8000, there is no annual maintenance for the first three years, maintenance each year in years four and five is $2000, then $4500 in year six, and invreasinh by $2500 each year thereafter. the salvage value is $0 at all times and the MARR is 12% per year. the economic life of the challeneger is how many years?
Please show me the solution thank you! P.S Not in excel
A piece of equipment has a first cost of $75000, a maximum useful life of 4 years, and a market (salvage) value described by the relation Sk = 60000 – 10500k, where k is the number of years since it was purchased. The AOC series is estimated using AOC = 30000 + 4500k. The interest rate is 9% per year. When should the company replace this asset?
Cleaners, Inc. is considering purchasing equipment costing $60,000 with a 6-year useful life. The equipment will provide cost savings of $15,705 and will be depreciated straight-line over its useful life with no salvage value. Cleaners requires a 10% rate of return. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 13% 6 4.623 4.486 4.355 4.231 4.111 3.784 What is the approximate profitability index associated with this equipment? Round your answer to 2 decimal places.
A certain machine has book value of P120,000 after 5 years and P80,000 after 7 years. The book value is computed using Straight Line Method. Determine the initial cost of the equipment.
A new machine costs $100,000 and is expected to last 10 years. At the end of 10 years, the salvage value of the machine is $50,000. What is the depreciation of the machine in the first year and the fifth year? (Declining Balance)
A piece of equipment has a first cost of $75000, a maximum useful life of 4 years, and a market (salvage) value described by the relation Sk = 60000 – 10500k, where k is the number of years since it was purchased. The AOC series is estimated using AOC= 30000 + 4500k. The interest rate is 9% per year. When should the company replace this asset?
2) The initial cost of a new m/c is $10,000. The annual operating cost is $1,000/yr for first 3 years, and then becomes $3,000/yr after that. The m/c needs a major repair at the end of 5th year, which costs $5,000. The m/c has 10 years useful life with salvage value of $4,000. Calculate EUAC for keeping the m/c for 10 years. (i=10%/yr)
A business firm is contemplating to purchase new equipment. The purchase price is 60,000 and its annual operating cost is 2,675.4. The machine has a life of 7 years and is expected to generate 15,000 in revenues in each year of its life. Determine the internal rate of return of the machine, assuming zero salvage value.

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What would be the book value after three years using the DDB?