A concrete and rock crusher for demolition work has been purchased for $50,000, and it has an estimated SV of $12,000 at the end of its five-year life. Engineers have estimated that the following units of production (in m³ of crushed material) will be contrac over the next five years Using the units of production depreciation method, what is the depreciation allowance in year three, and what is the BV at the end of year two? The depreciation allowance in year three is $ The BV at the end of year two is $ (Round to the nearest dollar) (Round to the nearest dollar) EOY m² 1 14,000 2 26,000 CHILD 3 35,000 4 17,000 5 8,000

A concrete and rock crusher for demolition work has been purchased for $50,000, and it has an estimated SV of $12,000 at the end of its five-year life. Engineers have estimated that the following units of production (in m³ of crushed material) will be contrac over the next five years Using the units of production depreciation method, what is the depreciation allowance in year three, and what is the BV at the end of year two? The depreciation allowance in year three is $ The BV at the end of year two is $ (Round to the nearest dollar) (Round to the nearest dollar) EOY m² 1 14,000 2 26,000 CHILD 3 35,000 4 17,000 5 8,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 1E: A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash...

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A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm uses the straight-line depreciation method with a zero salvage value and has a (marginal) income tax rate of 40 percent. The firms cost of capital is 12 percent. Compute the IRR and the NPV. Should the firm accept or reject the project?
Show the solutions in a step-by-step manner. 1. A certain building has a salvage value of P1,000,000 after 40 years. Annual depreciation is P2,000,000. Using the Straight Line Method, how many years should you sell the building for P30,000,000? 2. A machine costs P2,500,000. At the end of its economic life of six years, its salvage value is P800,000. Using the Sum of the Years Digit Method of Depreciation, what will be its book value for the first year? Prepare a depreciation schedule. plz answer dont answer by pen paper
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