Software and hardware for optimizing cell design of robotic picking lines have an installed cost of P78,000with no residual value after 5 years. For years 2 and 4, determine the book values using (a) declining balance method (b) sinking fund formula and (c) double declining balance method.
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- A company owner has asked his accountant to research the photocopier equipment available from vendors, and to recommend the two best equipment alternatives. The company owner will decide on one piece of equipment to purchase. The fee charged for the accountant’s research was $500. The accountant’s report produced the following information: Photocopier (A) Photocopier (B) Initial cost, including installation $6,500 $ 6,000 Economic life 5 years 5 years Scrap value at end of economic life -0- -0- Initial training cost $ 500 $ 700 Annual maintenance $ 400 $ 300 Annual wage cost $12,500 $12,500 REQUIRED Which photocopier should the company owner choose? Why? The company owner requested your help in preparing the coming year company budget. Please, guide him to the best method and appropriate type from your perspective. Evaluation and Grading: Your answers would be evaluated and graded based on: Coverage…Hemisphere Bank purchased a $100,000 online document imaging system with a depreciation recovery period of 5 years. Determine the depreciation for (a) the SL method and (b) DDB-to-SL switching. (c) Use a rate of i = 15% peryear to determine the PWD values. (MACRS is not involved in this example.)A solid-waste recycling plant is considering two types of storage bins using an MARR of 10% per year. (a) Use ROR evaluation to determine which should be selected. (b) Confirm the selection using the regular AW method at MARR = 10% per year. Storage Bin P Q First cost, $ −18,000 −35,000 AOC, $ per year −4000 −3600 Salvage value, $ 1000 2700 Life, years 3 6
- Don Williams is General manager of Carib Systems who received a proposal to replace the Version 1 with Version 2 Point of Sales (POS) equipment at the company. Williams collects data about the proposal on Version 1 and Version 2 as follows: Version 1 POS Version 2 POSOriginal cost $425,000 $170,000Useful life 5 years 3 yearsCurrent age 2 years 0 yearsRemaining useful life 3 years 3 yearsAccumulated depreciation…Based on company records of similar equipment, a consulting aerospace engineer at Aerospatiale estimated AW values for a presently owned, highly accurate steel rivet inserter as shown. A challenger has ESL = 2 years and AWC= $−41,300 per year. The MARR is 12% per year. If Retained ThisNumber of Years The AW Value Is,$ per Year 1 −62,000 2 −51,000 3 −49,000 4 −53,000 5 −70,000 If the consultant must recommend a replace/retain decision today, should the company keep the defender or purchase the challenger? The company should (Click to select) keep the defender purchase the challenger .Due to equipment power failure of Ceramics Plant, a disbursement a day would be$3,500. To avoid future power failures, it is recommended to purchase a standby machinefor $30,000 which is estimated to have a useful life of 14 years, $7,000 salvage value atthe end of this time. Previous records illustrate normal power failure of 4 days each year.Annual maintenance and operation would cost $3,200 for 4 days. Minimum required rateof return is 17%. Will you recommend purchasing the standby machine?
- A machine equipment has an initial purchase price of 20000 TL, an estimated scrap value of 2000 TL and an economic life of 5 years.a) Calculate using the Line-Line Method.b) Calculate using the Sum of Annual Figures Method.c) Calculate with the Declining Balance Method. Calculate the annual depreciation and residual values of the machinery equipment according to the above methods?please do not use the excel program.A new robot has a first cost of $380,000, and an annual operating cost of $88,000 in years 1 and 2, increasing by $10000 per year thereafter. The salvage value of the system is $25,000 regardless of when the system is retired within its maximum useful life of 5 years. Using a MARR of 14% per year, determine the ESL and the respective AW value of the system ESL: a) 1 year b) 4 years c) 5 years d) 3 years AW value of system: a) $204,860 b) $336,284 c) $97,953 d) $496,200Miller optometry is considering the purchase of a new lens grinder to replace a machine that was purchased several years ago. Selected information on the two machines is given below:OldMachine NewMachineOriginal cost when new ............ P80,000 P85,000Accumulated depreciation to date .. 32,000 Selling price of old machine..... 26,000 Annual operating cost ............. 4,000 3,000Remaining useful life ............. 4 years 4 years Required:Compute the total advantage or disadvantage of using the new machine instead of the old machine overthe next four years.
- ok value of $5,000, and its remaining useful life is five years. Annual costs are $4,000. A high school is willing to buy it for $2,000. New equipment would cost $18,000 with annual operating costs of $1,500. The new machine has an estimated useful life of five years. Prepare a differential analysis. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue with (Alternative 1) or Replace (Alternative 2) Old Machine Continue withOld Machine(Alternative 1) Replace OldMachine(Alternative 2) DifferentialEffects(Alternative 2) Revenues: Proceeds from sale of old machine ? ? ? Costs: Purchase price ? ? ? Variable manufacturing costs (5 years) ? ? ? Profit (loss) ? ? ? Feedback Partially correctA plant bought a calciner for P220,000 and used it for 10 years, the life span of the equipment. Assume a scrap value of P20,000 for straight line method; P22,000 for textbook declining balance method and P20,000 for the double declining balance method. What is the book value of the calciner after 6 years of use? (a) Using Straight Line Method (b) Using Declining Balance Method (c) Using Double Declining Balance MethodAn industrial drilling machine has an initial cost of P385,000. Determine the following if the salvage value is P60,000 at the end of its life of 10 years. a) the book value after 4 years using double declining balance method. b) the book value at the end of 6 years by declining balance method.