Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 44P
To determine
Calculate the book value.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Can you please show me how to do these parts on excel? I have included the solutions to the parts, but I need to see how it is done with the formulas/equations on Excel, so I can fully understand what is going on. Thank you in advance!
An engineering firm from purchased, 12 years
ago, a heavy planner for P50,000 with no salvage
value. As the life of the planner was 20 years, a
straight line depreciation reserve has been
provided on that basis. Now the firm wishes to
replace the old planner with a new one possessing
several advantages. It can sell the old planner for
P10,000. The new one will cost P100,000. How
much new capital will be required to make the
purchase?
- a. P60,000
- b. P55,000
• c. P66,000
- d. P57.000
6. Use 6 decimals while answering thank you
Chapter 9 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8PCh. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - Prob. 30PCh. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Prob. 47PCh. 9 - Prob. 48PCh. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - Prob. 51PCh. 9 - Prob. 52PCh. 9 - Prob. 53PCh. 9 - Prob. 1STCh. 9 - Prob. 2STCh. 9 - Prob. 3STCh. 9 - Prob. 4ST
Knowledge Booster
Similar questions
- HW#5 Last year your company purchased a used compressor for a gas gathering line system for $55,000. The field manager just called and informed you the machine broke down and needs to be replaced ASAP. You have found a new compressor with a purchase price of $97,830 that you can have delivered to the job site that would meet the necessary service requirements. Assume the new asset would have a zero-salvage value at the end of year 6. The other option is to rent a compressor and eliminate the upfront cost. The rental price will be $2,000 per month for 12 months paid at the beginning of each month. The rental agent informed you the cost is anticipated to escalate 5% at the end of each year. Build a 6-year model accounting for the cost escalation after 12 monthly payments. Based on a Present Worth Cost analysis should you lease or purchase? Confirm your selection by calculating an incremental NPV and ROR analysis. Your company uses a 12.68% effective annual interest rate. If there was a…arrow_forwardTanaka Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $275,000, has a 4-year life, and requires $81,000 in pretax annual operating costs. System B costs $355,000, has a 6-year life, and requires $75,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 22 percent and the discount rate is 9 percent. Calculate the EAC for both conveyor belt systems.arrow_forwardPart b Determine the depreciation deduction and the unrecovered investment during each of the first 4 tax years. EOY Depreciation Deduction Unrecovered Investment 0 1 2 3 Your answer is incorrect. 4 $ S $ 126563 243641 208594 193001 $ $ $ 3248438 2573625 2300594arrow_forward
- A certain copier machine cost P150000 with a trade-in value of P15000 after making 800,000 copies. Using declining balance method. What is the book value when the machine had made 300,000 copies?arrow_forwardAn electric sewing machine costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual depreciation cost by the sinking fund method at 5% interest.arrow_forwardPlease Correct solution with details and Do not give solution in image formatarrow_forward
- If an asset has a cost of 6,000, a salvage value of 1,500, and the annual straight line method depreciation expense is 1,125, what is the useful life of the asset?arrow_forwardA machine now in use was purchased four years ago at a cost of $30,000. It has a book value of $9,369. It can be sold for $12,000, but it could be used for three more years, at the end of which time, it would have no salvage value. What is the current amount of economic depreciation for this asset? Choose from the folowing, $12,000 $18,000 $32,000 $48,000arrow_forwardAn earth moving equipment that cost P 94,822 will have an estimated life of 10 years. Using double-declining balance method, compute the book value at the end of the year 3.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education