ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
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Chapter 11, Problem 21P
To determine
To find:The various
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A company that manufactures pulse doppler insertion flow meters uses the straight line method for book depreciation purposes. Newly-acquired equipment has a first cost of $170,000 with a 3-year life and $20,000 salvage value. Determine the depreciation charge and book value for year 2.
Earthmoving equipment with a first cost of $150,000 is expected to have a life of 10 years. The salvage value is expected to be 10% of the first cost. Calculate (a) by hand, and (b) by spreadsheet the depreciation charge and book value for years 2 and 7 using the SYD method.
Hempstead Industries has a new milling machine with B = $110,000, n = 10 years, and S = $10,000. Determine the depreciation schedule and present worth of depreciation at i = 12% per year, using the 175% DB method for the first 5 years and switching to the classical SL method for the last 5 years. Use a spreadsheet to solve this problem and plot the book values.
Chapter 11 Solutions
ENGINEERING ECONOMIC ENHANCED EBOOK
Ch. 11 - Prob. 1QTCCh. 11 - Prob. 2QTCCh. 11 - Prob. 3QTCCh. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7P
Ch. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10PCh. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 30PCh. 11 - Prob. 31PCh. 11 - Prob. 32PCh. 11 - Prob. 33PCh. 11 - Prob. 34PCh. 11 - Prob. 35PCh. 11 - Prob. 36PCh. 11 - Prob. 37PCh. 11 - Prob. 38PCh. 11 - Prob. 39PCh. 11 - Prob. 40PCh. 11 - Prob. 41PCh. 11 - Prob. 42PCh. 11 - Prob. 43PCh. 11 - Prob. 44PCh. 11 - Prob. 45PCh. 11 - Prob. 46PCh. 11 - Prob. 47PCh. 11 - Prob. 48PCh. 11 - Prob. 49PCh. 11 - Prob. 50PCh. 11 - Prob. 51PCh. 11 - Prob. 52PCh. 11 - Prob. 53PCh. 11 - Prob. 54PCh. 11 - Prob. 55PCh. 11 - Prob. 56PCh. 11 - Prob. 57PCh. 11 - Prob. 58PCh. 11 - Prob. 59PCh. 11 - Prob. 60PCh. 11 - Prob. 61PCh. 11 - Prob. 62PCh. 11 - Prob. 63PCh. 11 - Prob. 64P
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- Create a cashflow diagram or table. A European manufacturing company has new equipment with a first cost of 12,000 euros, an estimated salvage value of 2,000 euros, and a recovery period of 8 years. Use the SYD (sum of years-digits) method to tabulate annual depreciation and book value.arrow_forwardA robot used in simulated car crashes cost $70,000, has no salvage value, and has an expected capacity of tests not to exceed 10,000 according to the manufacturer. Volvo Motors decided to use the unit-of-production depreciation method because the number of test crashes per year in which the robot would be involved was not estimable. Determine the annual depreciation and book value for the first 3 years if the number of tests were 3810, 2720, and 5390 per year.arrow_forwardA European manufacturing company has new equipment with a first cost of 12,000 euros, an estimated salvage value of 2000 euros, and a recovery period of 8 years. Use the SYD method to tabulate annual depreciation and book value. Solve by hand and spreadsheet.arrow_forward
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- Carl is curious about the original cost of the digital imaging equipment he uses at the First National Bank. Accounting cannot tell him the cost, butthey know the annual depreciation over an 8-year period is $18,900 per year. If all items are straightline depreciated and the salvage is always 25% of the first cost, estimate the original cost.arrow_forwardDepreciation recapture occurs when a depreciable asset is sold for: (a) More than the current book value (b) More than the current market value (c) More than the estimated salvage value (d ) More than the first costarrow_forwardAn industrial equipment purchased price is P800,000 with estimated to have a life of 15 years. If the annual rate of depreciation is 18%, determine the total depreciation using the constant percentage method.arrow_forward
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