You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of $950,000 and estimated salvage value (SV10) of $80,000 after 10 years. For the straight-line and 200% declining balance methods, use a depreciable life (N) of 10 years. For MACRS, use a recovery period (N) of 7-yrs. ΕΟΥ, Κ 0 1 2 3 4 5 6 7 8 9 10 Straight-Line dk BVk 950,000 Declining Balance dk BVk 950,000 MACRS dk BVk 950,000 Upload your table AND summary calculations to this assignment. You do not need to show EVERY calculation but you do need to include the equations you used to complete the table.

You are to create a year-by-year depreciation schedule for an asset that has a cost basis (B) of $950,000 and estimated salvage value (SV10) of $80,000 after 10 years. For the straight-line and 200% declining balance methods, use a depreciable life (N) of 10 years. For MACRS, use a recovery period (N) of 7-yrs. ΕΟΥ, Κ 0 1 2 3 4 5 6 7 8 9 10 Straight-Line dk BVk 950,000 Declining Balance dk BVk 950,000 MACRS dk BVk 950,000 Upload your table AND summary calculations to this assignment. You do not need to show EVERY calculation but you do need to include the equations you used to complete the table.

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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Baird Rentals can purchase a van that costs $110,000; it has an expected useful life of five years and no salvage value. Baird uses straight-line depreciation. Expected revenue is $40,425 per year. Assume that depreciation is the only expense associated with this Investment. Required a. Determine the payback period. Note: Round your answer to 1 decimal place. b. Determine the unadjusted rate of return based on the average cost of the investment. Note: Round your answer to 1 decimal place. (l.e., .234 should be entered as 23.4). a. Payback period b. Unadjusted rate of return years %
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?
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)
Alternative R has a first cost of $85,000, annual M&O costs of $60,000, and a $20,000 salvage value after 5 years. Alternative S has a first cost of $175,000 and a $55,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 25.00% The M&O cost for alternative S is $
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)
I need the answer quickly
A project with a life of 10 has an initial fixed asset investment of $25,620, an initial NWC investment of $2,440, and an annual OCF of −$39,040. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 10 percent, what is the project's equivalent annual cost, or EAC? Show equations using excel.
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
G
Can you help me solve this?
Consider the following alternatives below.Based on a 7% interest rate, assuming both alternatives perform the same task and there is a continuing requirement, which alternative should be selected and what is its equivalent uniform annual cost?
Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te=40%. The (GI -OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold. Alternative First Cost, $ Salvage Value, Year 4, $ GI-OE, $ per Year Recovery Period, Years X -8,000 0 3,500 3 Y -13,000 2,000 5,000 3 The PW for alternative X is determined to be $ The PW for alternative Yis determined to be $ Alternative (Click to select) is selected.

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