An asset has a first cost of $12,000, an annual operating cost of $3500 and a salvage value of $5000 after 7 years. Calculate the annual worth for one cycle at i = 206 1743- 6442- 3475- 5836- O O O O
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A: * SOLUTION :-
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- 1. An equipment has a first cost of P500,000 and the cost of installation is P30,000. If the salvage value is 10% equipment cost at the end of the its useful life of 5 years. Compute the book value at the end of 3rd year. Using: Straight Line Method Sum of Years Digit Method Sinking Fund Method (if money is worth 6% per annum) Declining Balance Method Using Double Declining Balance MethodThe purchase of a motor for P6000 and a generator for P4000 will allow a company to produce its own energy. The configuration can be assembled for P500. The service will operate for 1600 hrs per year for 10yrs. The maintenance cost is P300 per year and the cost to operate is P0.85/hour for fuel and related costs. Using straight line depreciation, what is the annual cost(P) for the operation? There is P400 in salvage value for the system at the end of 10yrs.Machine X has an initial cost of $14,000. It is expected to last 10 years, to cost $255 per year to maintain and to have a salvage value of $6,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 7% interest is approximately _____________. A. $1385 B. $1763 C. $1547 D. $1814
- In the choice of mechanical equipment you are required to submit your recommendation as to which of the two steam shovels for earth excavation is better to buy. The basis is 20 year service and interest at 7%. Taxes and insurance are the same in each case: 5% & 1% respectively. Use Annual Cost to determine 50-ton shovel. 50-ton shovel 70 ton shovel First Cost P30k P38k Life 20 years 20 years Salvage value P2k P3k Annual Operation P15k P17k Annual Upkeep P1.5k P2k Annual Output 150k yards3 200k yards3 a. P21,803.002 b. P12,083.002 c. P21,083.002 d. P21,380.002A certain newly created company installed a 10,000 KW electric generating plant at a cost of P430 per kW. The amount of the total cost of the plant was sold to the public and were to mature in 15 years. The salvage value is conservatively set at 5% of the first cost, interest bond is 4% and on sinking fund deposit is 3½% What is the sinking fund accumulation after 10 years?A machine cost P480, 000 and has a salvage value of 10% of its cost at the end of its life of 30,000 operating hours. 1. Determine its book value after using 4000 hrs. a. P 422 400.00 b. P340430.00 c. P 135 180.00 d. P 256 620.00 2. If the machine can produce 50,000 units in its entire life, determine the book value after producing 20 000 units. a. P307 200 b. P326 000 c. P288 000 d. P190 100
- a machine cost 73500 and has a life of 8 years with a salvage value of 3500 at the end of 8 years. determine the book value at the end of 5 years using the straight line methoedHyundai USA has numerous robotic welders as well as robotic checkers with vision. One underbody robotic welder costing $1,200,000 (7-year property class) was installed and is increasing productivity by 2.5% in one area. The result is a savings of $500,000 per year. Deductible expenses other than depreciation and interest associated with the installed robotic welder are only $120,000. Hyundai borrowed $550,000 at 11% for 5 years. They plan to keep the welder for 8 years. Hyundai’s income-tax rate is 25% and their MARR is 9% after taxes. Determine the PW, FW, AW, IRR, and ERR for the investment if: The loan is paid back using Plan 3. Only calculate PW and IRRHyundai USA has numerous robotic welders as well as robotic checkers with vision. One underbody robotic welder costing $1,200,000 (7-year property class) was installed and is increasing productivity by 2.5% in one area. The result is a savings of $500,000 per year. Deductible expenses other than depreciation and interest associated with the installed robotic welder are only $120,000. Hyundai borrowed $550,000 at 11% for 5 years. They plan to keep the welder for 8 years. Hyundai’s income-tax rate is 25% and their MARR is 9% after taxes. Determine the PW, IRR, for the investment if: The loan is paid back using Plan 3 Plan 3—make equal principal-plus-interest end-of-period payments.
- Will upvote when answered right and followed the instructions. Thanks! A machine has an initial cost of $80,000 and a salvage of $8,000 after 10 years. What is the book value after 9th year using Sinking Fund Method.Come up with book value tabulation, interest rate is at 12%.A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using Sum of the Years Digit Method. Answer: BV5=₱25,454.5Show SolutionHow to get to the answer? Please show full working. Answer should be C) Replacement every 3 years, $130, 364/year. Hand written plz