Answered: A machine costs P1,800,000. It has a…

A machine costs P1,800,000. It has a salvage value of P300,000 at the end of 5 years. If money is worth 6% annually, find the book value after 3 years using sinking fund method.

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 6RQ

See similar textbooks

Related questions

Q: 2. An engineer wants to have 2,500,000.00 PHP four years from now. What amount should he invest now…

A: Bimonthly means once for every two months . n = 12/2 = 6 Quarterly means 4 times n,=4

Q: 1. A machine shop purchased 10 years ago a milling machine for Php. 60,000.00. A straight-line…

A: sol. Assume that no scrap value at the end of 20 years, Cn=0the depreciation of a milling machine…

Q: In five years, P18,000 will be needed to pay for a building renovation. In order to generate this…

Q: Cost of machine = P 1.4 MUseful life = 8 yearsSalvage value = P10, 000Determine the 4thyear…

Q: A man bought a lot worth P2.5M if paid in cash. On the installment basis, he paid a down payment of…

A: Calculate final payment if interest was 15.6%?

Q: 1. A company purchased an asset for P10,000.00 and plans to keep it for 20 years. If the salvage…

A: Cost = P10000 life = 20 years Salvage at the end of 20 year = 0 Period for depreciation, per = 3 Sum…

Q: ow much will earn in 6 years

A: compound interest:

Q: A machine cost P1,500,000 and will have a scrap value of P150,000 when retired at the end of 15…

A: Find annual investment cost…

Q: A new engine was installed by a textile plant at a cost of P 300,000 and projected to have a useful…

Q: 3. A machine shop purchased 12 years ago a milling machine for P68,000. A straight line depreciation…

A: Besides physical resources, such as production plants, capital can also include financial assets,…

Q: Fifty thousand pesos is deposited annually at an interest rate of 6% per annum compounded…

Q: A machine is bought at P150,000 with an economic life of 6 years and a salvage value of P5,000. The…

A: Depreciation: every year the value of the machine gets decreases over the usage and time .

Q: The salvage value of a front loader at the end of 4 years is Php23,000 and Php18,000 at the end of 5…

Q: 29. A machine costing P480,000 is estimated to have a salvage value of 10% of the first cost when…

Q: A P20 000.00 bond is sold now for P18 500.00. Determine the redemption price at the end of seven…

A: Face value = P 20,000 Number of periods = 7 ×2 = 14 periods Periodic yield = 12%2 = 6% per period…

Q: Ten years ago a businessman purchased a machine for P 50,000 with an expected life of 20 years based…

Q: An asset is purchased for P120,000. Its estimated life is 10 years, after which it will be sold for…

A: To find the depreciation

Q: Determine the present worth of the following cash flows based on an interest rate of 6.18% per year,…

Q: An asset is purchased for P500, 000.00. The salvage value in 25 years is P100, 000.00. What is the…

A: Depreciation can be calculated by Straight line method Decline balance method Sum of years digit…

Q: Problem 4: An equipment costs P 500,000 and has a salvage value of P 25,000 after its 25 years of…

A: This question is related to Estimation costing and Valuation. In this Problem we calculate Book…

Q: A man has deposited $50 000 in a retirement income plan with a local bank. Thisb ank pays 9% per…

A: This is problem related to Estimation costing and valuation Engineering. In this given initially…

Q: The initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10…

A: We have to determine the value of depericiation at 5th year instant when 6 % interest is applied…

Q: A machine which costs P10,000 was sold as scrap after being used for 10 years. If the scrap value…

A: Calculate the annual rate of depreciation. Salvage value = First cost (1-k)n…

Q: A man wishes to have 40,000 Php in a certain fund at the end of 8 years. How much should he invest…

Q: What will be the maturity value of PhP12,000 invested for 4 years at 15% compounded quarterly? A.…

Q: 2. A machine costs PhP 300,000 with a salvage value of PhP 50,000 at the end of it's life of 10…

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

Q: A machine that costs P75 000.00 five years ago now cost P45 864.31, when 7% interest is applied…

A: Given machine initial costs P75 000.00 machine final costs P45 864.31, time=10 years interest…

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

Q: A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount…

A: for first term total payable amount after 6 year=2000*1.086=3173.75 rs

Q: Given the following data for a construction equipment: Initial cost = P 1,200,000.00; Economic Life…

A: Given data, Initial cost (S) = P 1,200,000 Economic life (n) = 12 years Salvage value = P 320,000

Q: The first cost of a machine is Php 1,800,000 with a salvage value of Php 300,000 at the end of its…

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

Q: The first cost of an electric rebar bender is P332,000 and a salvage value of P46,000 at the end of…

Q: The first cost of a machine is 50,000 and it has a depreciation of 4500 per year. If the salvage…

Q: 2. A machine purchased for P150,000 its estimated life is 15 years, after which it will be sold for…

Q: P500,000 was deposited 20.15 years ago at an interest of 7% compounded semi-annually. How much is…

A: Given P= p 500,000 r = 7% = 0.07 n = 2 t = 20.15 years

Q: Eng David is required to pay 57500pesos at the end of 30 days of 60000pesos at the end of 80…

Q: A man paid 10% as down payment of P200,000.00 for a house and lot and agreed to pay the balance on…

Q: 1. A commercial building has a salvage value of PhP 2 million after 50 years. Annual depreciation is…

A: Straight line method is linear line formula based method.

Q: mount of the deposit after five years? *

A: 1 Philippine peso= 1.48 Indian rupee

Q: 2. A fixed capital investment of P10, 000,000.00 is required for a proposed manufacturing plant and…

A: The fixed capital investment is P=10,000,000 The depreciation is 10%. The depreciation amount per…

Q: An asset is purchased for P500,000.00. The salvage value in 25 years is P100,000.00. What is the…

A: As per guidelines we are supposed to solve only one question please post other questions separately

Q: A company purchases an asset for Php. 10,000.00 and plans to keep it for 20 years. If the salvage…

A: Purchase value : 10,000 Life : 20 years Salvage value SV20 = 0 Salvage value can be given as, SV…

Q: A loan of P 50,000 is to be paid in 3 years at the amount of P 65,000. What is the effective rate of…

A: This problem is related to Estimation and Costing Engineering. And Calculate to Effective Rate of…

Q: 4. A machine is bought at P420,000 with an economic life of 6 years and a salvage value of PhP…

Q: 5. An electronic balance costs P90,000 and has an estimated saivage value of P8,000 at the end of…

A: We will calculate per year depreciation and then find book value.

Q: A machine costs Php 400,000 with a salvage value of Php 200,000. Life of it is six years. In the…

Q: During the month of May a mining company has a gross income of P5M from the production of gold. All…

A: Disclaimer: As per the guidelines the solution is for Qu3. Depletion Allowance: Deductions from…

Q: A bank can lend a client Php 10,000.00 with a simple annual interest rate of 3% to be paid after 3…

A: Explained below

Concept explainers

Engineering Economics Principles

Engineering economics (engineering economy) is a sub-field of economics to study the use and application of the economic principles in the engineering analysis of decisions along with the systematic evaluation of the advantages of project costs inclusive of engineering design and analysis. It emphasizes microeconomics (a subset of economics) for researching the behavior of people in the decision-making process of assigning and determining multiple alternatives to the usage of some of the restrained resources and merging economic theory and engineering practice in a practical manner. It depicts the logical framework of economics in addition to the analytical application of statistics and mathematics.

Question

A machine costs P1,800,000. It has a salvage value of P300,000 at the end of 5 years. If money is worth 6% annually, find the book value after 3 years using sinking fund method.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.

Similar questions

A machine costs P1,800,000.00. It has a salvage value of P300,000 at the end of 5 years. If money is worth 6% annually. Determine the total depreciation at the 2nd year using the sum of years method.
Compute the capitalized cost of a new car worth P800,000 if it is estimated that is requires P20,000 per year to maintain and must be replaced at the same amount with a salvage value of P300,000 after 5 years if the interest rate is 12% per annum.
Ten years ago a businessman purchased a machine for P 50,000 with an expected life of 20 years based on straight line depreciation. Today, he decided to replace it with a modern one that costs P 120,000. If the salvage value of the old unit is P 20,000, how much more will he raise to buy the new machine? a. P 55,000 b. P 45,000 c. P 90,000 d. P 75,000
A machine which costs P10,000 was sold as scrap after being used for 10 years. If the scrap value was P500, determine the depreciation charge during the fifth year and the book value at the end of 5 years using (a) constant percentage method, (b) double declining balance method, (c) SYD method and (d) straight line formula.
A machine costs P 800 000 and has an estimated salvage value of P 200 000 at the end of 20 years useful life. Compute the book value at the end of 2nd year using sinking fund method of depreciation based on 8% interest rate.
A contractor can buy trucks for P 800,000 each or rent them for P 1,200 per truck per day. The truck has a salvage value of P 100,000 at the end of its useful life of 5 years. The annual maintenance cost is P 20,000 per truck. Using the annual worth method and 14% interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.
An electronics balance costs P98,000 and has an estimated salvage value of P6,000 at the end of its 13 years lifetime. What should be the depreciation after three years, using the sum of the years digit in solving for the depreciation?
A man bought an equipment which cost P520,000.00. Freight and installation expenses cost him 31,000.00. If the life of the equipment is 15 years with an estimated salvage value of P120,000.00, find its book value after 8 years.
Show the use formula and please show the step by step solution to get the correct answer! Dont forget the cash flow diagram. Thank you, God bless :) 3. A contractor can buy trucks for P 800,000 each or rent them for P 1,200 per truck per day. The truck has a salvage value of P 100,000 at the end of its useful life of 5 years. The annual maintenance cost is P 20,000 per truck. Using the annual worth method and 14% interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.
Subject: Engineering economy A small machine costing P80,000 has a salvage value of x at the end of its life of 5 years. The book value at the end of the 4th year is P22,400. What is the value of x using the straight line method depreciation?
A machine cost P80,000 and the salvage value is P20,000 after 10yrs. Calculate the depreciation at year 6. Use Sum of Year's Digit Method. note: please provide a solution for us to understand how to solve it thank you please don't use computer, please solve it
A new excavator costs $20,000 when purchased and has an annual maintenance cost of $1000. The salvage value after 5 years is $7000. The new excavator is expected to bring in $5000/year in profits. Assuming an annual interest rate of 8%, is the excavator worth buying? Draw the cash flow diagram.