A cooling water pumping station at a manufacturing plant in Iligan City costs 30,000,000 php to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. Calculate the annual depreciation charge for year 10 (d10) using:

Q: A machine has an initial cost of $30,000, labor annual cost of $37,000, maintenance annual cost of…

A:

Q: A piece of equipment has a first cost of P500,000 and the cost of installation is P30,000. If the…

A: Depreciation (Straight Line Method) = (Cost-Salvage Value) / Useful life Depreciation (Sinking Fund…

Q: The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

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A: Construction cost = Php 5,000,000 Operating expense for first 7 years = Php 100,000 Operating…

Q: Columbia Comp. invests RM 270,000 in a project that is depreciated on a straight-line basis over…

A: Accounting rate of return = Average annual profit / Average investment

Q: The equipment in a power station costs IQD 30,000,000 and has a salvage value of IQD 1,200,000 at…

A: The depreciation is said to be decrease in value of an asset with the usage and passage of time.

Q: Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to…

A: The accounting rate of return method (ARR):  The accounting rate of return is the amount of income…

Q: A machine costs Php 500,000 with a salvage value of Php 50,000. Its useful life is six years. The…

A: Depreciation is the decrease in the value of fixed tangible asset due to usage, obsolence or passage…

Q: Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to…

A: Accounting rate of return = Average net income/Average investment *100 = $89486/$420120 *100 =…

Q: A CNC machine costs $220,000. A facility purchases one and plans to use it for 12 years, at which…

A: Double declining depreciation rate = Straight line depreciation rate x 2 = (100/12 years) x 2 =…

Q: 1. A cooling water pumping station at a manufacturing plant in Iligan City costs P30,000,000 to…

A:

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: The first cost of a machine is Php 1,800,000 with a salvage value of Php 400,000 at the end of its…

A: Depreciation = C × (S/C)m/n C = original cost S = scrape value n = life of property in years m =…

Q: A project has an initial requirement of $95,316 for equipment. The equipment will be depreciated to…

A: Calculation of Net Present Value:The net present value is $99,450.25.Excel Spreadsheet:

Q: 1. A cooling water pumping station at a manufacturing plant in ligan City costs P30,000,000 to…

A: Depreciation is a systematic reduction in the cost of an asset over its useful life. There are  many…

Q: Company AMP wants to determine the net present value of one of its systems when cost of capital is…

A: The net present value of a project can be defined as the current value of positive and negative cash…

Q: Project A requires a $280,000 initial investment for new machinery with a five-year life and a…

A: The average rate of return: The accounting rate of return means the average return on the initial…

Q: Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are…

A: Net Present Value- The net present value or net present worth applies to a sequence of cash flows…

Q: A new machine costs $160 000, has a useful life of 10 years, and can be sold for $15 000 at the end…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: An investment of $20,000 for a new condenser is being considered. Estimated salvage value of the…

A: Capital budgeting is a technique that helps to analyze that which project is profitable and which…

Q: XYZ Company invests $2,000,000 for a new machine. The new machine will generate an annual income of…

A: For calculation of IRR two rates are estimated with close range, in which one rate should have…

Q: A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 10 years.…

A: Machine cost (C) = Php 300000 Salvage value (S) = Php 50000 n = 10 years r = 6%

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

A:

Q: A factory equipment has an initial cost of Php200,000.00. Its salvage value after 10 years is…

A: Initial cost = Php 200,000 Salvage value = Php 20,000 Life = 10 Years Annual depreciation = (Initial…

Q: A new absorption chiller system costs $360,000 and will save $52,500 in each of the next 12 years.…

A:

Q: calculated the annual depreciation charge for year 10(d10)

A: Depreciation:  The cost of the asset which is spread over the benefits of the estimated useful life…

Q: by using spreadsheet (choose only 2 methods) build the depreciation and book valye schedule 2.)if…

A: Depreciation can be defined as the charge on the fixed assets of the company that reduces the value…

Q: Pads Corp. is contemplating the purchase of a large stamping machine which will cost Php 500.000.…

A: The question is based on the concept of Depreciation Accounting.

Q: Bulldozer cost P12 Million and the cost of installation labor, taxes and miscellaneous expenses is…

A: P 1 Million = P 1000000 P 12 Million = P 12000000 The Cost Of Bulldozer = P 12000000 + P500000 = P…

Q: A machine costs $500,000 and is expected to yield an after-tax net income of $19,000 each year.…

A: Answer:   6.33%

Q: A cement mixer costs P50,000 with an estimated life of 6 years. Its salvage value is P2,500. Find…

A: Here, Cost of Cement Mixer  (FC) is P50,000 Salvage Value (SV) is P2,500 Estimated Life is 6 years…

Q: An equipment has a first cost of P500,000 and the cost of installation is P30,000. If the salvage…

A: solution : given : cost of asset       =500,000 installation cost =30,000 total Capitalized cost…

Q: use Sinking Fund Method and determine the depreciation at the 5th year.

A: Sinking fund method is a method of depreciation technique. This method helps in taking financing…

Q: A new absorption chiller system costs $360,000 and will save $52,500 in each of the next 12 years.…

A: Net present worth approach is a quantitative analysis tool that helps in evaluating the investment…

Q: The table given below lists the relevant cost items for a specific system purchase. The operating…

A: Answer a) Basic cost =$160000+$15000+$15000=$190000Salvage value =$160000 x 25%=$40000Depreciation…

Q: GIVEN: Project C requires $800,000 net initial investment for new machinery with a 8-year life and a…

A: Initial Investment on machine = $800,000 Salvage Value = $40,000 Useful Life = 8 Years Straight Line…

Q: The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500,…

A: NPV means PV of net benefits arises from the project in the future. It can be simple calculated by…

Q: 1. A cooling water pumping station at a manufacturing plant in Iligan City costs P30,000,000 to…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The initial cost of a paint sand mill, including its installation is P806,875. The mill will last…

A: A sinking fund is a method of charging depreciation where every year a fixed amount of depreciation…

Q: National Textile Manufacturing Company is considering three new projects, each requiring an…

A: NPV and Payback period: NPV and Payback period are two important capital budgeting techniques that…

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: jected to have 25 year life with an estimated salvage value of 10% of construction cost. Calculate…

A: The cost of the asset which is spread over the benefits of the estimated useful life of an asset is…

Q: A machine costs P8,000, lasts 8 years, and has a salvage value of P400. Determine the depreciation…

A: The question is based on the concept of Depreciation Accounting. As per the Bartleby guidelines we…

Q: A set of Wire Bond machine costs $500,000. This amount includes freight and installation charges…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: A machine costs $600,000 and is expected to yield an after-tax net income of $23,000 each year.…

A:

Q: A cooling water pumping station at a manufacturing plant in N City cost $30,000,000 to construct,…

A:

Q: A solar panel unit has been purchased by a company for electricity back up. The solar unit costs…

A: Depreciation expense refers to the fall in the value of the asset due to passage of time, wear and…

Q: An investment of $20,000 for a new condenser is being considered. Estimated salvage value of the…

A: The external rate of return (ERR) is the rate of return on a project on which any “excess” cash is…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.