A certain equipment costs P7,000 has an economic life of n years and a salvage value P350 at the end of n years. If the book value at the end of 4 years is equal to P2197.22, compute for the economic life of the equipment using the sum of years digit method
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A certain equipment costs P7,000 has an economic life of n years and a salvage value P350 at the end of n years. If the book value at the end of 4 years is equal to P2197.22, compute for the economic life of the equipment using the sum of years digit method.
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- An industrial plant bought a generator set for P89,663. Other expenses including installation amounted to P9,618. The generator set is to have a life of 17 years with a salvage value at the end of life of P6,667. Determine the book value at the end of 9 years by the sinking fund method at 12.36%.A certain machine has book value of P173,205.08 after 5 years and P82,187.59 after 8 years. The book value is computed using Declining Balance Method. Determine the initial cost of the equipment and its salvage value in its economic life of 10 years.An 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.
- A certain equipment costs P X now and has a salvage value of P 40,000 at the end of 23,000 hours of use. In the first year of service, it was used for 7,000 hours. Find X if the book value of the equipment after the 1st year is P 360,000.A boiler was bought for P1,500,000 cost of installation and shipping amounted to P200,000. The estimated salvage value after 20 years is 10% of the unit cost. Twelve years later the boiler will be rehabilitated at a cost of P300,000. Salvage value and economic life were expected to increase by P50,000 and 5 years respectively. Using the sinking fund method with 10% interest, determine the book value at the end of 18 years.A machine that has been used for 8 years has a market value of $2,500 now, which decreases by $100 each year for the next 5 years. Maintenance costs this year are $5k, and for the next 5 years they are estimated at $6k, $7k, $8k and $9k. Determine the marginal cost of extending the service for two years if the MARR is 12%. Answer the questions: a) How much is the loss in market value in year 2? b) How much is the loss in interest in year 2? c) What is the Marginal Cost in year 2? d) If the machine's minimum EUAC is $5,500, when, in years, should the machine be replaced?
- The industrial equipment is worth P300,000 has an estimated life of 12 years with a salvage value of P45,000. Compute the book value after 8 years using the sinking fund method assuming I = 10%The cost of the equipment is P550,000 and the cost of handling and installation is P28,000. If the book value of the equipment at the end of the 3 year P275,000 and the life of the equipment is assume to be 5 years. Determine the salvage value of this equipment at the end of 5 years.A machine purchased a year ago for $85,000 costs more to operate than anticipated. At the time of the purchase, it was expected to be used for 10 years with annual maintenance costs of $22,000 and a salvage value of $10,000. However, last year, it incurred a cost $38,000, which is expected to escalate to $39,300 this year and increase by $1,300 each year thereafter. The market value is now estimated to be $81,000–$10,000k, where k is the number of years since the machine was purchased. It is now estimated that the machine will be useful for a maximum of 6 more years. A replacement study is to be performed. Determine the values of P, n, AOC for year 6 and S of this defender. The value of P is $ _______ . The value of n is_______ years. The AOC for year 6 is______ . The value of S is $______ .
- A large, standby electricity generator in a hospital operating room has a first cost of $70,000 and may be used for a maximum of 6 years. Its salvage value, which decreases by 15% per year, is described by the equation S = 70,000(1 − 0.15)n, where n is the number of years after purchase. The operating cost of the generator will be constant at $75,000 per year. At an interest rate of 12% per year, what is the economic service life and associated AW value?The Delta firm intends to buy a device called machine X. Machine X would cost $25,000 and have little salvage value after 10 years of use. The machine is anticipated to bring around $10,000 annually. Do the simple payback period calculation.Wanting to acquire a new generator set for the plant to replace the unit that they currently use. The new set has an amount of P150,000 which can last up to 5 years and no salvage value. It has production cost of P175.000. The present generator set they have still has a life of 5 remaining years out of the 10 years of its useful life with a salvage value of P12,000. Its current value can be computed by Straight Line Method. Its original cost is P130,000 that has a production cost of P180,000. If money is worth 10%, what would you suggest?