Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 7, Problem 49P
(a):
To determine
Calculate the present value of EVA.
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Determine the rate of depreciation, the total depreciation, the total depreciation up to the end of the 8th year and the book value at the end of 8 years for an asset that costs P 15,000 new and has an estimated scrap value of P 2,000 at the end of 10 years by (a) Declining balance method (b) Double Declining balance method
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A drilling machine was acquired by Western Harverster Co at a cost (B) = $50,000 with a 5-year recovery period and salvage value S =$10,000. What is the depreciation in year 3 using MACRS? Using MACRS, what fraction of the initial $50,000 will be cumulatively depreciated by the end of year 3? If MACRS depreciation is used, what is the Book Value at the end of year 2?
Using the following data, solve for the depreciation and book value and prepare tabulation of
book value using
a) Straight Line Method, b) Sinking Fund Method, c) Declining Balance Method, and d)
Sum-of-Years Digit (SOYD) Method.
First cost P10.000
Salvage Value = P500
Life of Property = 5 years
For sinking fund method, assume 10% interest rate,
Chapter 7 Solutions
Engineering Economy
Ch. 7 - How are depreciation deductions different from...Ch. 7 - Prob. 2PCh. 7 - Explain the difference between real and personal...Ch. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10P
Ch. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - A manufacturer of aerospace products purchased...Ch. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Prob. 20PCh. 7 - Prob. 21PCh. 7 - Prob. 22PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25PCh. 7 - Prob. 26PCh. 7 - Prob. 27PCh. 7 - Prob. 28PCh. 7 - Prob. 29PCh. 7 - Prob. 30PCh. 7 - Prob. 31PCh. 7 - Prob. 32PCh. 7 - Prob. 33PCh. 7 - Prob. 34PCh. 7 - Prob. 35PCh. 7 - Prob. 36PCh. 7 - Prob. 37PCh. 7 - Prob. 38PCh. 7 - Prob. 39PCh. 7 - Prob. 40PCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Prob. 43PCh. 7 - Prob. 44PCh. 7 - Prob. 45PCh. 7 - Prob. 46PCh. 7 - Prob. 47PCh. 7 - Prob. 48PCh. 7 - Prob. 49PCh. 7 - Prob. 50PCh. 7 - Prob. 51PCh. 7 - Prob. 52PCh. 7 - Determine the after-tax yield (i.e., IRR on the...Ch. 7 - A 529-state-approved Individual Retirement Account...Ch. 7 - Prob. 55PCh. 7 - Prob. 56PCh. 7 - Prob. 57SECh. 7 - Prob. 58SECh. 7 - Prob. 59SECh. 7 - Prob. 60SECh. 7 - Prob. 61FECh. 7 - Prob. 62FECh. 7 - Prob. 63FECh. 7 - Prob. 64FECh. 7 - Prob. 65FECh. 7 - Prob. 66FECh. 7 - Prob. 67FECh. 7 - Prob. 68FECh. 7 - Prob. 69FECh. 7 - Prob. 70FECh. 7 - Prob. 71FECh. 7 - Prob. 72FECh. 7 - Prob. 73FECh. 7 - Prob. 74FECh. 7 - Prob. 75FECh. 7 - If the federal income tax rate is 35% and the...Ch. 7 - Prob. 77FECh. 7 - Prob. 78FECh. 7 - Prob. 79FECh. 7 - Prob. 80FECh. 7 - Prob. 81FECh. 7 - Prob. 82FECh. 7 - Prob. 83FECh. 7 - Prob. 84FE
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- Use MACRS to compute the depreciation schedule for office furniture purchased for $80,000 (use the 7 yr depreciation schedule). Assume salvage value is $10,000. Please show how you did the work for each year.arrow_forwardRequired information Halcrow Yolles purchased equipment for new highway construction in Manitoba, Canada, costing $490000 Canadian. The estimated salvage at the end of the expected life of 4.000 years is $50,000. Various acceptable depreciation methods are being studied currently. Determine the depreciation for year 2 using the DDB(Double Declining Balance), 150% DB(Declining Balance), and SL(Straight Line Depreciation) methods. Determine the depreciation by hand. The depreciation using SL method is determined to be $ The depreciation using DDB method is determined to be $ The depreciation using 150% DB method is determined to be $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_forward
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