A businessman is considering the purchase of a machine that is expected to be obsolete in 5 years. The machine is worth P100,000. The prevailing rate of interest is 15%. His estimate of the annual gross incomes from the use of the machine is as follows: Year Income 1 20,000 2 25,000 3 35,000 4 30,000 5 28,000 Total = P138 999 Should the businessman purchase the machine?

Q: An industrial plant bought a generator set for P90,000. Other expenses including installation…

A: * SOLUTION :-       The given data is,

Q: Thick Trunk Sawmill purchases a new automated log planer for Php95,000. The asset is depreciated…

A: The Depreciation refers to the fall in the value of the assets due to the expected and unexpected…

Q: A certain equipment costs P 7,000 and a salvage value of P 350 at the end of its economic life.…

A: We have first cost of the equipment FC=7000 Salvage value =350 Book value at the end of 4 years is…

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A: In economics, present value refers to the current value of a future stream of cash flow. Future…

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A: A good business is all about optimizing all of your efforts and resources to their best potential,…

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A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you as per…

Q: A company considers introducing a new newspaper. Its direct competitor charges $0.25 at retail. The…

A: Salvage value is the estimated book value after depreciation. given information Initial…

Q: The first costs of an equipment is P 65,000 and a salvage value of P 3,000 at the end of its 6- year…

A: First cost of the equipment (FC) =P65000 Salvage value (S) =P 3000 Useful life (n) =6 years r=10% We…

Q: A contractor is considering the purchase of a set of machine tools at a cost of $50,000. The…

A: Present worth represent the value of asset or any goods and services after the depreciation and the…

Q: An oil refinery has decided to purchase some new drilling equipment for $570,000. The equipment will…

A: Equipment cost = 570000 Time = 13 years Salvage value = 16000

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A: Hula Hoop have a real value of $1 each. There is no other costs besides the cost of fabricators. The…

Q: Consider a five-year MACRS asset, which can be purchased at $80.000. Thesalvage value of this asset…

A: The total accumulated depreciation for three years MACRS can be calculated as follows:

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

A: Cost of equipment = 250,000 Life = 25 years Salvage Value = 30,000

Q: Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated…

A: Present Worth is defined as the method which is used to calculate future cashflows  Given,  Cost of…

Q: A factory equipment has an initial cost of P200,000,00. It salvage value after 10 years is…

A: The formula is: Depreciation =initial cost-salvage valueyears=20000000-200000010=1800000

Q: A business is considering purchasing a $200,000 management system. The plan is to depreciate to zero…

A: a Time line   0 1 2 3 4                                                           Cost of…

Q: 3. ABY company purchased a new CNC machine for $100,000. The market value of the new machine in each…

A: Cost of machine = $100,000 Maintenance cost per year = $30,000 MARR = 12%

Q: A generator costs P500,000 and whose salvage value is P10,000 after 20 years. 13.How much is the…

A: Given  Cost of generator = 500,000P salvage value = 10000P Time = 20 years

Q: A firm is considering purchasing a machinethat costs $65,000. It will be used for six years, andthe…

A: The recovery rate under the general depreciation system for five year is given in the below table.…

Q: A machine was purchased at an original cost of P400,000 with a salvage value of P20,000. Life of…

A: GIVEN DATA   Purchase price = Php 400,000 Salvage value = Php 20,000 Life of machine = 6 years Total…

Q: A printing machine initially costs ₱169,000. It can be sold for ₱15,000 at the end of its 12-year…

A: The double  declining balance method of accelerated depreciation is a type of accelerated…

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A: The measure that depicts the current stream of cash flows being discounted at a specified rate of…

Q: A machine was purchased at an original cost of P400,000 with a salvage value of P20,000. Life of…

A: Here we calculate the depreciation at the end of second year by using the given information , so the…

Q: Time, years Pretax revenue, E Resale value, S SO S50,000 1 $22,000 S18,000 S14,000 S38,000 S27,000…

A: For the above question following steps are taken : Cash flow has been formulated including the…

Q: Suppose a farmer decides to replace an old tractor by investing in a new machinery. The old tractor…

A: Given  The first cost of the machine is FC= $50,000 Annual depreciation for first-year = 33.33%…

Q: la. An asset is purchased for $90,000. It is expected to have a useful life of six years and a…

A: Given: The cost of an asset is = $90,000 Useful life = 6 years Salvage value = $18,000 To Find: The…

Q: A new machine cost of P136,500 has an estimated useful life of 9 years, the salvage value of the…

A: Hi! thanks for the question but as per the guidelines we answer only one question up to three…

Q: In March 2021, Tamara Mines Co. purchased a coal mine for $6,000,000. Removable coal is estimated at…

A: Due to depletion, the amount of natural resources accessible will decrease over time. Depletion…

Q: ABC Systems is purchasing a new bar code-scanning device for its service center in Cabuyao. The…

A: Depreciation under straight line method = (Cost - Salvage) /Life = (190000 - 40000) / 5 = 30000 Here…

Q: A machine costing P45.000 is estimated to have a salvage value of P4,350 when retired attheendof6…

A: Answer: Given that:     A machine costing P45,000 is estimated to have a salvage value of P4,350…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: The net annual savings because of acquisition of new machine is named as equivalent annual savings.…

Q: The following table contains a summary of how a project's balance is expected to change over its 5…

A:

Q: A concrete and rock crusher for demolition work has been purchased for $50,000, and it has an…

A: Depreciation allowance is the estimation of the annual cost of using an assets that is form on…

Q: ABY company purchased a new CNC machine for $100,000. The market value of the new machine in each…

A: Cost of machine = $100,000 Maintenance cost per year = $30,000 MARR = 12%

Q: Omar Shipping Company bought a tugboat for $75,000 (year 0) and expected to use it for five years…

A: Income is the potential for spending and saving that a person receives within a given period of…

Q: Malu Luigi Company makes an internal policy that for every new machine purchased, the annual…

A: Given: The price of new machine = P 500000 Depreciation cost = 15% of the first cost  So,…

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A: Estimated life is "a gauge of the normal number of years a resource is viewed as usable before its…

Q: A machine worth P10,000 depreciates in value each year by 15% of its value at the beginning of that…

A: Given Information: Principal Value (P): P10,000 rate of depreciation (r): 15% each year. Time…

Q: A printing machine is bought at $1 million and is estimated to have a salvage value of $100,000…

A: Given information The first cost of machine P=$1,000,000 Salvage value of machine after 500,000…

Q: Straight line. Units of production (assume 30,000 and 60,000 units were produced in 2021 and 2022,…

A: * SOLUTION :-  *1)

Q: Salvage Years N 0 Net Expenses Investment A company is consider buying a new machine for $8,550. The…

A: Given information Initial investment=$8550 Maintenance cost=$195 per year life=11 years Salvage…

Q: Chandler Corporation is planning to invest P420,000 in a new machine which it will depreciate on a…

A: Initial Cost = 420,00 Cash From Operation = 50,000 per years (1-6 years) and 60,000 (7-10)…

Q: the depreciation in the third year?

A: Solution: Given Data Asset price = P 10000 Useful life (n) = 20 years Salvage value = 0

Q: Telecom Namibia is considering the purchase of a machine which cost 100 thousand dollars, and which…

A: In economics, present value refers to the current value of a future stream of cash flows, discounted…

Q: You are considering the purchase of a new high-efficiency machine to replace older machines now. The…

A: This can be solved by replacement method:

Q: A company purchased a machine for P15,000. It paid sales tax and shipping costs of 1,000 and…

A: