Answered: 10. A machine costs P 8,000.00 and an…

10. A machine costs P 8,000.00 and an estimated life of 10 years with a salvage value of P500.00. What is its book value after 8 years using straight-line method? with cash flow

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 6RQ

See similar textbooks

Related questions

Q: A construction equipment costing 630,000 has a life of 10 years using the sum of years digit method,…

Q: Double Declining Balance Method

Q: A machine costing P 480,000 has a life expectancy of 12 years with a salvage value of 10% of the…

Q: 1. A machine shop purchased 10 years ago a milling machine for Php. 60,000.00. A straight-line…

A: sol. Assume that no scrap value at the end of 20 years, Cn=0the depreciation of a milling machine…

Q: An equipment is bought at Php. 420,000.00 with an economic life of 6 years and a salvage value of…

Q: An asset that is book-depreciated over a 5-year period by the straight line method has C3 = P…

A: The formula for straight line SL depreciation is as follows : d=(P-S) /n Here, P is initial cost,…

Q: Cost of machine = P 1.4 MUseful life = 8 yearsSalvage value = P10, 000Determine the 4thyear…

Q: A rural cooperative purchased a trencher at a cost of Php. 230, 500.00. It is estimated that the…

A: Given details Opening net book value = Php. 230,500.00 Salvage value after digging 300000 metres of…

Q: 3. The cost of the equipment is P550,000 and the cost of handling and installation is P28,000. If…

Q: Contructor buy a bulldozer for his job, paying P30,000 to the manufacturer. Freight and ensurance…

A: The sum of years digits method is a form of accelerated depreciation that is based on the assumption…

Q: A machine costing P45,000 is estimated to have a salvage value of P4,350 when retired at the end of…

A: This question is related to Estimation costing and Valuation. In this question we calculate annual…

Q: A machine is bought at P420,000 with an economic life of 6 years and a salvage value of P50,000. The…

Q: A machine is bought at P150,000 with an economic life of 6 years and a salvage value of P5,000. The…

A: Depreciation: every year the value of the machine gets decreases over the usage and time .

Q: The salvage value of a front loader at the end of 4 years is Php23,000 and Php18,000 at the end of 5…

Q: Show complete solution An existing machine in the factory has an annual maintenance cost of 40,000.…

Q: Ten years ago a businessman purchased a machine for P 50,000 with an expected life of 20 years based…

Q: An engineer bought an equipment for P500,000. Other expenses including installation amounted to…

A: Total cost=500,000+30,000=530,000life=10salvage…

Q: Question 30 An electronics balance costs P87,000 and has an estimated salvage value of P12,000 at…

Q: What is the value of an asset after 8 years of use if it depreciates from its original value of…

A: The straight-line method is generally a method of calculating depreciation and amortization, the…

Q: A machine costing P45,000 is estimated to have a salvage value of P4,350 when retired at the end of…

Q: 5. An industrial plant bought a generator set for Php. 90,000.00. Other expense including…

A: Initial cost (P)= 90,000+10,000 = 1,00,000/-Salvage value(sv) = 5000/-useful life (n)= 17…

Q: The initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10…

A: We have to determine the value of depericiation at 5th year instant when 6 % interest is applied…

Q: A machine which costs P10,000 was sold as scrap after being used for 10 years. If the scrap value…

A: Calculate the annual rate of depreciation. Salvage value = First cost (1-k)n…

Q: 2. A machine costs PhP 300,000 with a salvage value of PhP 50,000 at the end of it's life of 10…

Q: 23. An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at…

Q: 8. An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage…

Q: A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is…

A: Given: Original cost Estimated life Salvage value To find: Book value after 8 years

Q: 7. A certain office equipment has a first cost of P20,000 and has a salvage value of P1,000 at the…

Q: A machine that costs P75 000.00 five years ago now cost P45 864.31, when 7% interest is applied…

A: Given machine initial costs P75 000.00 machine final costs P45 864.31, time=10 years interest…

Q: A machine costing P45, 000 is estimated to have a salvage value of P4, 350 when retired at the end…

Q: A printing machine is to be installed at a cost of 38000 in a press. Assuming the life of the…

A: given cost of machine S=38,000life n=25 yearscompound interest i=5%salvage value=3500

Q: The first cost of a machine is Php 1,800,000 with a salvage value of Php 300,000 at the end of its…

Q: A machine costs P 800 000 and has an estimated salvage value of P 200 000 at the end of 20 years…

A: Given data, Machine cost =P 8,00,000 Salvage value = P200,000 Life = 20 years Interest rate = 8% To…

Q: 25. A structure cost P12,000 new. It is estimated to have a life of 5 years with salvage value at…

A: Cost of structure = 12000 Estimated life = 5 years Salvage value = 1000 To Find :- Book value at the…

Q: Problem 5: Given the following data for a construction equipment: Initial cost = P 1,200,000.00;…

Q: An asset was purchased six years ago at a cost of P7,000. It was estimated to have a useful life of…

A: Given Data: Purchased value of asset Ci=P ¯7,000 Useful life (n) = 10 yrs. Salvage value Cs=P¯300…

Q: A project costs P100, 000. The benefits at the end of each year for a period of 5 years is equal to…

A: Consider the given data As there is no salvage value

Q: 5. A truck for hauling coal has an estimated net cost of $55,000 and is expected to give service for…

Q: A machine costing P45,000 is estimated to have a salvage value of P4,350 when retired at the end of…

A: Bt = ( 1 - k )t P P = 45000 t = 6 years Bt = 4350

Q: 2. An electrical devices cost P63,800 has a life expectancy of 7 years and has a salvage value of…

A: Given, Cost = P63800 Life = 7 years Salvage value = P32600 Book value = P27500

Q: A machine has an initial cost of P50,000.00 and a salvage value of P10,000.00 after 10 years. What…

Q: An asset is purchased for P500,000.00. The salvage value in 25 years is P100,000.00. What is the…

A: As per guidelines we are supposed to solve only one question please post other questions separately

Q: . A contractor can buy trucks for P 800,000 each or rent them for P 1,200 per truck per day. The…

Q: A company purchases an asset for Php. 10,000.00 and plans to keep it for 20 years. If the salvage…

A: Purchase value : 10,000 Life : 20 years Salvage value SV20 = 0 Salvage value can be given as, SV…

Q: A dump truck was bought for ₱300,000, six years ago. It will have a salvage value of ₱ 30,000 four…

Q: An industrial plant bought a generator set for P80,000. Other expenses including installation…

Q: 4. A machine is bought at P420,000 with an economic life of 6 years and a salvage value of PhP…

Q: A company is considering buying a new piece of machinery. The initial cost of the machine is 80,000…

A: To calculate the equivalent uniform annual cost. Given, Initial cost, say P = 80,000 Salvage…

Q: A machine costs P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its…

A: This question is related to the Method of Depreciation from Estimation, cost and valuation…

Q: During the month of May a mining company has a gross income of P5M from the production of gold. All…

A: Disclaimer: As per the guidelines the solution is for Qu3. Depletion Allowance: Deductions from…

Concept explainers

Engineering Economics Principles

Engineering economics (engineering economy) is a sub-field of economics to study the use and application of the economic principles in the engineering analysis of decisions along with the systematic evaluation of the advantages of project costs inclusive of engineering design and analysis. It emphasizes microeconomics (a subset of economics) for researching the behavior of people in the decision-making process of assigning and determining multiple alternatives to the usage of some of the restrained resources and merging economic theory and engineering practice in a practical manner. It depicts the logical framework of economics in addition to the analytical application of statistics and mathematics.

Question

10. A machine costs P 8,000.00 and an estimated life of 10 years with a salvage value of P500.00. What is
its book value after 8 years using straight-line method?

with cash flow

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.

Similar questions

A man bought an equipment which cost P520,000.00. Freight and installation expenses cost him 31,000.00. If the life of the equipment is 15 years with an estimated salvage value of P120,000.00, find its book value after 8 years.
A machine costs P1,800,000.00. It has a salvage value of P300,000 at the end of 5 years. If money is worth 6% annually. Determine the total depreciation at the 2nd year using the sum of years method.
An equipment cost $100,000 with a salvage value of $5,000 at the end of 10 years. Using a sinking fund method, find the approximate book value after 3 years. Assume i = 4% per annum.
A machine costs P 800 000 and has an estimated salvage value of P 200 000 at the end of 20 years useful life. Compute the book value at the end of 2nd year using sinking fund method of depreciation based on 8% interest rate.
9. An engineer bought an equipment for P500,000. Other expenses including installation amounted toP30,000. At the end of its estimated useful life of 10 years, the salvage value will be 10% of the first cost. Usingstraight line method of depreciation, what is the book value after 5 years? with cash flow
A new excavator costs $20,000 when purchased and has an annual maintenance cost of $1000. The salvage value after 5 years is $7000. The new excavator is expected to bring in $5000/year in profits. Assuming an annual interest rate of 8%, is the excavator worth buying? Draw the cash flow diagram.
A machine has an initial cost of P50,000.00 and a salvage value of P10,000.00 after 10 years. What isthe book value after five years using straight-line depreciation? with cash flow
Prepare a depreciation table for semiconductor manufacturing equipment that cost P1.8M, with an estimated salvage value of 10% of the original cost at the end of 5 years using the straight-line method.
Ten years ago a businessman purchased a machine for P 50,000 with an expected life of 20 years based on straight line depreciation. Today, he decided to replace it with a modern one that costs P 120,000. If the salvage value of the old unit is P 20,000, how much more will he raise to buy the new machine? a. P 55,000 b. P 45,000 c. P 90,000 d. P 75,000
A contractor can buy trucks for P 800,000 each or rent them for P 1,200 per truck per day. The truck has a salvage value of P 100,000 at the end of its useful life of 5 years. The annual maintenance cost is P 20,000 per truck. Using the annual worth method and 14% interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.
A machine cost P80,000 and the salvage value is P20,000 after 10yrs. Calculate the depreciation at year 6. Use Sum of Year's Digit Method. note: please provide a solution for us to understand how to solve it thank you please don't use computer, please solve it
Compute the capitalized cost of a new car worth P800,000 if it is estimated that is requires P20,000 per year to maintain and must be replaced at the same amount with a salvage value of P300,000 after 5 years if the interest rate is 12% per annum.