A bulldozer was bought for ₱ 0.50M and have an estimated useful life of 10 years after which it will have a scrap value of ₱0.05M. Repair and maintenance is placed at ₱ 35T annually, while cost for fuel, oil, lubricant and operator plus helper will be ₱ 12T monthly. Determine the following: What is the annual cost using the straight line method for computing depreciation when the minimum attractive rate of return is 8%?

Q: A machine costs P1,800,000. It has a salvage value of P300,000 at the end of 5 years. If money is…

A: Solution: Cost of machine = P1,800,000 Depreciation rate - SLM = 1/5 = 20% Depreciation rate  - DDB…

Q: The initial cost of a machine is 30000 TL, its depreciation life is 7 years and its scrap value is…

A: Depreciation describes the decrease in the value of the asset on a systematic basis on yearly basis.…

Q: A temporary warehouse can be built for $10 million and its salvage value when decommissioned is…

A: Decommissioning Cost: The dollar amount that a financial manager spends for the removal of the plant…

Q: Compute the equivalent annual cost to own equipment with an initial investment of $54,000, yearly…

A: Equivalent annual cost (EAC) is the total annual cost of owning, operating, and maintaining an asset…

Q: A new production system for a factory is to be purchased and installed for $175,812. This system…

A: Equivalent annual worth  The annual cost of owning and sustaining an asset is determined by dividing…

Q: A machine can be purchased for $60,000 and used for five years, yielding the following net incomes.…

A: Payback period refers to the time period that is required to recover the initial cost. With the help…

Q: A certain machine costs GH¢25000 and lasts 6 years, after which time it has a scrap value of…

A: A capitalized cost of an asset is the cost incurred on an asset to put it to use. Capitalized cost…

Q: A bowling alley costs $500,000 and has a useful life of 10 years. Its estimated MV at the end of…

A: Depreciation expense is the amortization of the asset cost over its useful life. It is debited to…

Q: Jefferson Company is considering investing $33,000 in a nev last five years and to have a salvage…

A: The expense of borrowing money is called interest expenditure. For using the lender's funds, the…

Q: An existing machine in a factory has an annual maintenance cost of Php 40,000. A new and more…

A: An existing machine in a factory has an annual maintenance cost of Php 40,000. If same cost to be…

Q: determine the average annual income.

A: The average rate of Return: The average rate of return is the percentage of average return incurred…

Q: meter, with both components assumed to be paid at year-end. Actual use is expected to be 1,500 hours…

A: The net advantage lost by rejecting a different course of action is known as opportunity cost. Its…

Q: mainte

A:

Q: A hydraulic lift is purchased for a warehouse for $60,000. This lift is expected to generate $7000…

A: Rate of Return on Investment = Net income/Total Investment Depreciation Expense = Cost of the…

Q: A pump in a production plant costs $15,000. After 9 years, the salvage value is declared at $0.…

A:

Q: A machine costs $700,000 and is expected to yield an after-tax net income of $30,000 each year.…

A:

Q: An old machine has a first cost of P10M and an annual operating cost of P2,023,479 and a useful life…

A: The annual equivalent cost refers to the cost of possessing, operating, painting the machine or the…

Q: An injection molding system has a first cost of $175,000 and an annual operating cost of $95,000 in…

A: ESL means maximum life of the machinery up to which machine can provides positive cashflows. ESL is…

Q: A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: The cost of a Range Rover is 50,000 RO with an estimated life of 8 years and the salvage value is…

A: Depreciation per year = (Cost - Salvage value) / Depreciable Life

Q: A new production system for a factory is to be purchased and installed for $115,042. This system…

A: Initial investment =  115,042 Annual dollar savings = Savings in electricity consumption * cost per…

Q: An asset which has a first cost of RM 40,000 is expected to have an annual operating cost of RM…

A: Data given: First cost =RM 40,000 Annual operating cost = RM 15,000 Rate=20%

Q: Use the PW method. Show the cash flow diagram if necessary and complete solution. Do not use excel…

A: i)  Present worthIt is not worthwhile to purchase the new machine because its present worth is less…

Q: Consider the following operating and maintenance costs of a new machine whose first cost is $ 86,000…

A: Please see the next step for the solution

Q: One of two methods must be used to produce expansion anchors. Method A costs $80,000 initially and…

A: Given information is: Method A costs $80,000 initially and will have a $15,000 salvage value after 3…

Q: If an asset costs $65,000 and is expected to have a $5,000 salvage value at the end of its ten-year…

A: Cash payback period  = Initial  investment  /annual cash inflow

Q: A motorcycle costs P50,000 and has an expected life of 10 years. The salvage value is estimated to…

A: In the given question, appropriate rate of return on investment is required. It implies that…

Q: The new delivery truck is worth a total of Php 7.4M, with a residual value after 8 years is Php…

A: In a diminishing balance method of depreciation, higher depreciation is charged in the initial years…

Q: An equipment costing Php250,000 has an estimated life of 15 years with a book value of Php30,000 at…

A: Declining Balance Method: It is the depreciation calculating method where assets get depreciated…

Q: An electronics balance costs P87,000 and has an estimated salvage value of P8,000 at the end of its…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: Machine “A” has an initial cost of $ 50,000 with an estimated period of 12 years and a salvage value…

A: Present value of cash outflows = Cash outflows/(1+r)n  r is interest rate and n is time period of…

Q: What is the average amount invested in a machine during its predicted five-year life if it costs…

A:

Q: The initial investment cost of machine A is 9,000 TL, the useful life of the machine is 6 years and…

A: Time value tells that money received today is of more value than that of receiving exact value later…

Q: A bulldozer was bought for P 0.50M and have an estimated useful life of 10 years after which it will…

A: Straight Line Depreciation Expense=Cost of Asset-Salvage ValueUseful Life

Q: An electronics balance costs P88,000 and has an estimated salvage value of P10,000 at the end of ts…

A: Depreciation = ( Cost of the asset - Salvage value ) * Number of years left / Sum of years

Q: The initial cost of a new m/c is $10,000. The annual operating cost is $1,000/yr for first 3 years,…

A: The question is based on the concept of calculating Equivalent Uniform Annual Cost (EUAC) for a…

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

A: Solution- (A)-EAC=NPV/At,rwhereA=The present value of an annuity factort=Number of periodsr=Interest…

Q: A company is considering purchasing equipment costing $92,000. The equipment is expected to reduce…

A: IRR is the rate at which NPV is zero

Q: An injection molding system has a first cost of $200,000 and an annual operating cost of $69,000 in…

A: ESL refers to economic service life of the new equipment. To determine ESL, AW of the asset is…

Q: A machine costs $300,000 with a salvage value of P50,000 at the end of its life of 10 years. If…

A: Sinking fund method is one of the method of depreciation under which the funds would be accumulated…

Q: A van costs $25,000 and has an expected life of 6 years, with a salvage value (Residual Value) of…

A: Depreciation is a cost as an asset losses its value gradually over its useful life due to general…

Q: A ceiling fan costs 1,680 has an economic life of 3 years and has scrap value of 20. What is the…

A: In straigh line method, the annual depreciation expense remain constant over the period of usefull…

Q: A company is considering two methods for obtaining a certain part on annual basis. Method A will…

A: Required: The number of units to make the two methods, producing in-house and purchase, break-even.

Q: Machine “A” has an initial cost of $ 50,000 with an estimated period of 12 years and a salvage value…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: A machine has a first cost of PhP 800,000 and a salvage value of PhP 50,000 at the end of its life…

A: Return means earn additional on invested amount over the period. It shows excess cash inflow over…

Q: An injection molding system has a first cost of $200,000 and an annual operating cost of $85,000 in…

A: The question is based on the calculation of economic service life and annual worth of a machine.…

Q: A machine costing P720,000 is estimated to have a life of 10 years. If the annual rate of…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…