A man bought a machine for $ 884577 six years ago. It has a salvage value of $ 37642 four years from now. He sold it now for $ 146905. What is the sunk cost or the value of the machine that the man lost if the depreciation method used is a Sinking Fund method with an interest of 21%?

A man bought a machine for $ 884577 six years ago. It has a salvage value of $ 37642 four years from now. He sold it now for $ 146905. What is the sunk cost or the value of the machine that the man lost if the depreciation method used is a Sinking Fund method with an interest of 21%?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: How do Millennials' characteristics influence their buying behaviour?

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

Q: ‘Utility services cost less even though they cost more’, elaborate this law with the help of suitabl...

A: Utility services are less expensive, despite the fact that they are more expensive. Consider a compa...

Q: What are the annual payments necessary to pay a $100,000, 12-year loan if the loan rate is 8 %

A: The loan rate is defined as the rate of interest at which the loan is paid to the bank. It means the...

Q: Please see image for question

A: Most, but not all, countries have various currencies. Ecuador, El Salvador, and Panama, for example,...

Q: Write down the importance of capital in three brief paragraphs?

Q: What is the present value or price of a $150 annual perpetuity if the returns on similar contracts a...

A: Given Data, Value of annual perpetuity= $150. Discount rate= 7%. Formula to calculate present...

Q: .4 (Least squares) UpTop Mining has compiled the following data to analyz costs: onth Machine Hours ...

A: Given data to analyse utility costs :

Q: An economist working for Amazon wants to test how well the "99-cent pricing strategy" works. To do s...

A: Since you have multiple questions, we would answer the first one for you. To get answers to the rest...

Q: The selling of formerly government owned industries to individual investors is known as?

A: Liberalization, Privatization, and Globalization (LPG) are three terms that describe the process of ...

Q: Fill in the column for marginal cost in the previous table. (Hint: MC = ) Fill in the column for ave...

A: In economics, the marginal cost of production is the change in total production cost that comes from...

Q: Who favors John Maynard Keynes theories currently and how are they applied?

A: John Maynard Keynes is an British economist who developed Keynesian economics in 1930s in order to...

Q: Choose the two methods with which the government can balance the federal budget. These two methods m...

A: Budget refers to a legal document which is created either by the government or some other political ...

Q: WHAT IS THE IMPACT OF DIFFERENT SECTORS OF THE COMMUNITY RO THE ECONOMY?

A: The economy is a system in which individuals earn a livelihood by producing, consuming, investing, a...

Q: How are John Maynard Keynes economic theories applied?

A: John Maynard Keynes was opposed to the beliefs of Adam Smith. According to Keynes, there should be a...

Q: A. If public utilities are a natural monopoly, what would be the danger in deregulating them?

Q: Civilian Employment = 157722 Unemployment = 6270 Not in Labor Force = 99333 Use the values abo...

A: Here, information about employment, unemployment and not is labor force is given. To find: Working-...

Q: 1. Explain the importance of Sovereignty in a State. 2. Discuss the necessity of the Government in a...

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...

Q: The regional wage board declared an across the board (nationwide) average 3.4% increase in the 2021 ...

A: % Increase (change) in minimum wages: 3.4% Current minimum wage earning labor force = 2.332 million ...

Q: ind the equation for elasticity. ind the elasticity at the given price, stating whether the demand i...

A: Given, D(p) = √349-p

Q: Suppose that a small town has seven burger shops whose respective shares of the local hamburger mark...

A: "The four-firm concentration ratio and the Herfindahl index are two measurements of market concentra...

Q: For the demand function q= D(p)%3D201-p, find the following. a) The elasticity b) The elasticity at ...

A: According to the Bartleby guidelines, we answer only the first question in case of multiple question...

Q: An economy produces two goods A and B. Both households and the government purchase goods A and B. Us...

A: Given: Goods produced by the economy=A and B Note: Due to multiple questions being posted, the first...

Q: A loan of P200,000 was to be paid monthly for 1 year at an interest rate of 18 % compounded continuo...

A: Given that; Loan amount =P200000 Term =1 year Interest rate=18% 1st payment is made at the end of 4t...

Q: Pork belly strips and lettuce are complementary goods because most of the time they are enjoyed toge...

A: As we know that complementary goods have a negative relationship between the price of one good and t...

Q: How are Milton Friedman’s economic theories applied?

A: Milton Friedman is widely considered to be one of the most important economists and political philos...

Q: A brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the brewe...

A: Answer -

Q: 1. How much would be in your account in 10 years after depositing $2000 now? The annual interest rat...

A: All the Answers are given below.

Q: Consider a simple economy with a single good: bread. There are 5 loaves of bread and two potential c...

A: Concept Pareto efficiency, also known as Pareto optimal, is an economical situation in which resourc...

Q: An investment of $100,000 in safe 10-year corporate bonds yields an average of 9% per year, payable ...

Q: Suppose the economy currently has an inflation rate of 7%. Moreover, the slope of the economy's Phil...

A: For a classical model of Phillips Curve we assume that the production function in economy is only a ...

Q: Define and explain what is unemployment?

A: People who are voluntary unemployed are not considered in unemployment rate. People who are not will...

Q: An investment of $100,000 in safe 10-year corporate bonds yields an average of 9% per year, payable ...

A: First Of all we will calculate nominal interest rate after tax:-

Q: Circle the Nash equilibrium. Professor Give quiz No quiz You Go to class (0, 0) (2, 6) Skip class (-...

A: We know that Nash equilibrium is the intersection of the best response for each player. Let player 1...

Q: Explain how consumer expectation is a determinant of demand.

A: Demand simply refers to a customer's desire to purchase goods and services without hesitation and pa...

Q: A man bought a machine for $ 535705 six years ago. It has a salvage value of $ 36957 four years from...

A: We have,

Q: QUESTION 8 Suppose that the production function y-f(x_1,x_2) (where: y is output level, x_1 is a var...

A: Question8: Answer: (d) y to increase with x_1 at a increasing rate, due to increasing returns to sca...

Q: (5) For each situation, solve for the Bertrand-Nash Equilibrium (differentiated Product). 5a) Suppos...

A: To calculate Bertrand - Nash equilibrium when there are different marginal costs:- 150+5(210+5Pj20...

Q: Economists consider the effects of free trade on income distribution to be less important than the e...

A: False If there is a free trade, it would cause the more demand of the less priced imported items and...

Q: Each year, Johan typically does all his own landscaping and yard work. He spends $204 per year on mu...

Q: Financial markets in 2022 are concerned with the return of inflation and the interest rate policy fo...

A: Answer -

Q: What is Cost-push inflation? Mark all of the following that are true of Cost-Push inflation 4 correc...

A: Cost Push Inflation is referred to as increase in the aggregate prices with the increase in cost of ...

Q: Suppose the demand for dollars (in exchange for euro) is given by the equation: D= 180 +0.020 Y -550...

Q: A monopolist faces the demand curve P=120-3Q. The profit maximizing price is 90. What is the margina...

A: Given Demand curve: P=120-3Q .... (1)Profit maximizing price P=90 We have to calculate marg...

Q: Prepare a graph to shows your order point determination.

A: Calculation of the reorder point of order:- Reorder point = [Average inventory cost per day * time o...

Q: (7) For each situation, solve for the Stackelberg equilibrium 7a) Suppose Sarah’s constant MC is $5 ...

A: As per given data, We solving stackelberg, Joe moves first.

Q: 4. Consider a competitive industry with a large number of firms, an of which have identical cost fun...

A: As given Cost function is c(y) = y2 + 1 and demand function is D(p) = 52 - p

Q: 3. Union and Labor Market Efficiency (a) Given an inverse labor demand function of w = 30 - 0.02LD, ...

A: Inverse demand function is as follows:- w = 30 - 0.02LD w = 10

Q: Two firms compete as a Stackelberg duopoly. The demand they face is P= 402 - Q. The cost function fo...

A: The demand function depicts the functional connection between the quantity of a commodity demanded a...

Q: Discuss how firms choose how much output to produce.

A: Total Cost is the amount of expenditure incurred in the production of goods and services. Total Rev...

Q: Learning Task 7: List down some daily activities and tell how these contribute to climate change. Al...

A: Climate change is a very debated topic in the global scenario and human activities are one of the re...

Question

A man bought a machine for $ 884577 six years
ago. It has a salvage value of $ 37642 four years
from now. He sold it now for $ 146905. What is
the sunk cost or the value of the machine that
the man lost if the depreciation method used is
a Sinking Fund method with an interest of 21%?

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 3

VIEW

Calculation of lost amount

VIEW

Step by step

Solved in 4 steps with 5 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, economics and related others by exploring similar questions and additional content below.

Similar questions

Sinking Fund MethodGiven:FC = 2,000,000.00 pesosSV = 300,000.00 pesosi = 12.00%n = 9 yearsa. Annual depreciation = ?b. Total depreciation after 6 years= ?c. Book value at year 7 = ?
A construction equipment costs 700,000 pesos and will have a salvage value of 30% of its original cost when retired at the end of 4 years. What is the first year’s depreciation cost? Use sum of years digit method.need answer in 20 mins sorry for rushing pls heglp
Eng. Economics. Your small consulting company is evaluating a circuit board testingmachine. The device costs $35,000, and the maker estimates that itwill have a salvage value of $6,000 after 5 years of use. Determinethe annual depreciation.
2. An asset is purchased for $500,000. The salvage value in 25 years is $100,000 and the Straight Line Depreciation Method was used. What is the book value at the end of the 3rd year? no excel
A construction equipment costs 700,000 pesos and will have a salvage value of 30% of its original cost when retired at the end of 4 years. What is the first year’s depreciation cost? Use sum of years digit method. need answer in 20 mins sorry for rushing you guys :(
Equipment Depreciation A new piece of equipment cost acompany $15,000. Each year, for tax purposes, the companydepreciates the value by 15%. What value should thecompany give the equipment after 5 years?
A MACHINE COST P80,000 AND THE SALVAGE VALUE IS P20,000 AFTER 10 YEARS. CALCULATE THE DEPRECIATION AT YEAR 7. USE SUM OF YEAR’S DIGIT METHOD with solutions pls dont use excel thanku ill rate
A8 A machine has an initial cost of P50,000 and a salvage value of P10,000 after 10 years. What is the book value after five years using straight-line depreciation?
I need answer in 10minutes. A machine has a first cost of P113,222.48 and has an expected salvage value after 10 years P14,793.1. Find the total depreciation for year 6 using declining balance method.
A diamond mining company has just purchased a new crystal extraction machine that cost $5000, and has an estimated salvage value of $1000, at the end of its 8 yeaer useful life, what is its book value in year 5 using the double declining balance methiod? a) 3750 b) 2800 c) 500 d) 1187 plesae let me know the asnwer
A machine has a first cost of P400,000 and a salvage value of P46,000 17years from now. If the interest is 10%. Find the annual depreciation usingsinking fund method of depreciation.
Omar Shipping Company bought a tugboat for $75,000 (year 0) and expectedto use it for five years after which it will be sold for $12,000. Suppose the companyestimates the following revenues and expenses from the tugboat investmentfor the first operating year:Operating revenue $200,000Operating expenses $8400Depreciation $4000 If the company pays taxes at the rate of 30% on its taxable income, what is the net income during the first year?