A bedroom is costs P30,000. Its estimated scrap value is P15,000 after 8 years. Solve for the constant depreciation per year(d) with 7% interest rate.Use Sinking Fund Method
Q: A machine costs £15,000 and its useful economic life is 5 years. After 5 years, the machine’s scrap…
A: GIVEN, cost = 15000 n=5 net cash inflow = 5000 machine scrap = 3000
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A: Depreciation is decrease in the value of fixed asset due to wear and tear, and passage of time.
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A: Initial cost (X) = P 1231000 Annual cost (A) = P 412000 Replacement cost (R) = P 89000 every 5 years…
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A: Depreciation expense for the year = Depreciable cost* ( Remaining useful life)/(Sum of Years…
Q: compute the capitalized cost of a new car worth 800,000 if it is estimated that is requires 20,000…
A: Purchase price = 800,000 Annual cost = 20,000 Salvage value = 300,000 Period = 5 Years Interest…
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A: In WDV is written down value method in which depreciation is more in the initial years.
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A: A capitalized cost of an asset is the cost incurred on an asset to put it to use. Capitalized cost…
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A: EUAC or Equivalent uniform annual cost is the annual cost associated with operating and maintaining…
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A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…
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A: As per question , we are provided : Future value of all maintenance = P20000 Compounding rate = 6%…
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A: Time Period 20 Initial Cost P 38,00,000.00 Repair Cost at the end of 3rd year P 80,000.00…
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A: Annual Cash flow = net income before taxes - tax expense + annual depreciation = 10000 - 10000*20%…
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A: Depreciable value of machine = Cost of machine - Scrap Value of machine…
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Q: A buffing machine is costs P10,000. Its estimated scrap value is P1,000 after 10 years. Solve for…
A:
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A: Computation of the net present worth of this project is shown as follows:
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A: Net Present Value = (Annual cost savings x present value of annuity at 10%, 3 year) + (salvage value…
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A: Since this is multi- part question, we are going to solve only first three parts for you. To get the…
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A: Cash payback period = Initial investment /annual cash inflow
Q: A machine costs $10,000, has a useful life of 7 years and a salvage value of $1000.00 at the end of…
A: The formula for EUAC = r*NPV/(1-(1+r)^(-n)) Let us first find the NPV. Rate = 9.8% compounded…
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A: The concept used to determine the effective investment to compare the present value of cash outflows…
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Q: A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5 years.…
A: First cost (F) = P 150000 Let A = Annual saving Salvage value (S) = P 15000 n = 5 years r = 15%
Q: ATVIS costs P90,000. Its estimated scrap value is P10,000 after 5 years. Solve for the constant…
A: The sinking fund method is a way to depreciate an asset while still making enough money to replace…
Q: A project has a first cost of $75,000, operating and maintenance costs of $10,000 during each year…
A: First cost (C) = $75000 Annual cost (A) = $10000 n = 8 years Salvage value (S) = $15000 r = 12%
Q: Compute the capitalized cost of a new car worth P800,000.00 if it is estimated that it requires…
A: New car cost (C) = P 800000 Annual cost (A) = P 20000 Salvage value (S) = P 300000 n = 5 years r =…
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Q: A machine costs P840,222 with a scrap value of 10% of the original price at the end of its life of 8…
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Q: A buffing machine is costs P10,000. Its estimated scrap value is P1,000 after 9 years. Solve for the…
A: In sinking Fund method the depreciation is calculated as follows Sinking Fund Method Depreciation =…
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A: Here, Cost is $230,000 Time Period is 4 years Salvage Value is $35,000 Cost to operate and Maintain…
Q: s of $40,000 each year, the cash payback period is
A: Cash Payback Period = Initial Investment/Annual Cash Inflows = 240000/40000 = 6 YEARS
Q: A special-purpose machine toolset would cost $20,000. The toolset will befinanced by a $10,000 bank…
A: Use the MACRS table for the purpose of depreciation as shown below
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A: GIVEN, cost =$120,000 salvage value=$10,000 years=10 rate =10% annual repair cost =$5000 increase…
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A: The present worth analysis is an analysis where all the present values are calculated. All the…
Q: A sala set is costs P80,000. Its estimated scrap value is P5,000 after 10 years. Solve for the…
A: Sinking fund method of depreciation includes the setting aside of a fund apart from computing the…
Q: A machine costing $150 000 has a useful life of eight years, after which time its estimated resale…
A: Answer Cost = $150,000 Useful life = 8 year Discounting rate = 20% PVAIF @20% for 8 year = 3.838
Q: A sala set is costs P80,000. Its estimated scrap value is P5,000 after 3 years. Solve for the…
A: Sinking fund method of depreciation includes the setting aside of a fund apart from computing the…
Q: A new airconditioning unit costs P150,000 and will have a salvage value of P15,000 after 5 years.…
A: The question is based on the concept of Annuity and Present value in Financial Management. Annuity…
Q: Consider a machine that costs P20,000 and has a five years useful life. At the end of the five…
A: The question is based on the concept of Financial Management.
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- Gardner Denver Company is considering the purchase of a new piece of factory equipment that will cost $420,000 and will generate $95,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further Instructions on internal rate of return in Excel, see Appendix C.Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.
- Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel, see Appendix C.Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the following cash flows over the next five years: $99,000, $88,000, $92,000. $87,000, and $72,000. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return in Excel. see Appendix C.Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is the NPV using 8% as the discount rate?
- The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given here. The company’s cost of capital is 10%. Should the firm operate the truck until the end of its 5-year physical life? If not, then what is its optimal economic life? Would the introduction of salvage values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project?A restaurant is considering the purchase of new tables and chairs for their dining room with an initial investment cost of $515,000, and the restaurant expects an annual net cash flow of $103,000 per year. What is the payback period?Dauten is offered a replacement machine which has a cost of 8,000, an estimated useful life of 6 years, and an estimated salvage value of 800. The replacement machine is eligible for 100% bonus depreciation at the time of purchase- The replacement machine would permit an output expansion, so sales would rise by 1,000 per year; even so, the new machines much greater efficiency would cause operating expenses to decline by 1,500 per year The new machine would require that inventories be increased by 2,000, but accounts payable would simultaneously increase by 500. Dautens marginal federal-plus-state tax rate is 25%, and its WACC is 11%. Should it replace the old machine?
- The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $60,000, with annual net cash flows of $9,950 for 8 years. The required rate of return is 6%. Compute the net present value of this investment to determine whether or not you would recommend that Ham and Egg invest in this oven.Average rate of returncost savings Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of 125,000 with a 15,000 residual value and an eight-year life. The equipment will replace one employee who has an average wage of 28,000 per year. In addition, the equipment will have operating and energy costs of 5,150 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment.Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in year two, $2,000 in year three. $2,500 in year four, and $2,000 in year five. What is the NPV using 8% as the discount rate? For further instructions on net present value in Excel, see Appendix C.