Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 7, Problem 62FE
To determine

Calculate the book value.

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Suppose for some year the income of a small company is $110,000; the expenses are $65,000; the depreciation is $25,000; and the effective income tax rate = 40%. For this year, the ATCF is most nearly (a) −$8,900 (b) $4,700 (c) $13,200 (d) $29,700 (e) $37,000.
Depreciation can be regarded as all the following except a. An accounting concept b.   Decrease in value of an asset due to usage and time   c. A cash deduction that is reinvested at the MARR d. A tax saving measure on financial statements After you have conducted a future worth comparison of alternatives, what factor do you multiply the FW values by in order to obtain the AW values of the alternatives?   a.   (F/A, i, n)   b.   (F/P, i, n)   c. (A/P, i, n) d. (A/F, i, n)
Legacy Solution A21. Which of the following statement correctly describes 'depreciation' ? (a) It is a monthly allowance for wear and tear of a capital good. (b) It is based on the demand and supply of consumer goods in market. (c) It is calculated as the cost of good divided by number of years of its useful life. (d) It accounts for sudden destruction of capital caused due to natural calamities.

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Engineering Economy

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