Help please    The following details relate to a particular asset Future Cash flows (per annum) 90,000 Expected period of cash flows 3 years Discount Rate 10% Open market price of asset 210,000 Cost of asset 630,000 Accumulated depreciation 450,000   Calculate both :   a)determine the recoverable amount for this asset        b)Determine whether the asset is impaired

Q: Given the following information regarding an income-producing property, determine the NPV using…

A: The NPV is the sum of discounted cash flows less the initial costs.

Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…

A: N = 15 years Cost = 250,000 Book Value at end = 30,000 SLM Depreciation Method

Q: Given the following information regarding an income-producing property, determine the NPV using…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: An asset will cost $1750 when purchased this year. It is further expected to have a salvage value of…

A:

Q: An asset is purchased for 240 000 It is expected to provide an additional 56 000 of annual net cash…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: ssuming that capital requirement for new machinery is P135,000; net of sale of present equipment –…

A: Payback period is no. of years required to recover the amount invested.

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: A present asset (defender) has a current market value of $85,000 (year 0 dollars). Estimated market…

A: Answer: Since the company has a sound financial system and overall good working environment , the…

Q: Upper Division of Lower Company acquired an asset with a cost of $620,000 and a four-year life. The…

A: Working Note #1 Cost of assets will increase by 10% every year Year Cost of Assets(Formula)…

Q: The exit price of an asset is RO 10,000 and the cost of disposal of the asset is RO 150. The asset…

A: Net realizable value is defined as estimated selling price less cost of disposal.

Q: What is the capital recovery (CR) cost of the project? Assume Cash Flow First cost, S Annual cost, S…

A: In this we need to calculate the capital recovery cost of project.

Q: Upper Division of Lower Company acquired an asset with a cost of $560,000 and a four-year life. The…

A: ROI is called as return on investment. It is the ratio of net income to average investment.…

Q: For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear…

A: Given information first cost = $10,000 using MACRS recovery cash flow before tax = $10,000 for 3…

Q: A machinery worth BD20,000 has a lifetime of10 years and a salvage value of Rs. 1500. Calculate the…

A: Using the sinking fund method: Accumulated Depreciation=BD 12,584.21272 Book value at the end of…

Q: Win Corporation is considering the purchase of wood cutting equipment. Data on the equipment are as…

A: Under straight line depreciation, equal amount is being charged as depreciation in every year of…

Q: Consider the following net cash flow of a new machine whose useful life is 5 years and is 5,000 $. 1…

A: Rate of return is annual income earned on the investment. That should be sufficient to satisfy the…

Q: A manufacturing plant installed a new boiler at a cost of P150, 000 and estimated to have a useful…

A: Capitalized cost is the present value of the constant annual cost for infinite period.. Examples of…

Q: A present asset (defender) has a current market value of $85,000 (year 0 dollars). Estimated market…

A: Since the company has a sound financial system and overall good working environment , the overall…

Q: Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS…

A: MACRS rates is provided in IRS website

Q: Compute the book value of an asset with FC of ₱4 500 000 after 7th year if it has useful life of 13…

A: Here, Cost of Asset is P4,500,000 Useful Life is 13 Years Depreciation Rate is 7% Depreciation…

Q: Profitability index of Proposal B Answer 1 Payback period in years and months of Proposal B Answer…

A: Profitability Index  = Present Value Cash inflow / Present Value Cash outflow

Q: Determine the net present worth of a facility at an interest rate of 4% with a life span of 15 years…

A: Interest rate (i) of 4% A life span of 15 years (n) Initial cost (C) = $1,500,000 Annual O&M…

Q: A potential investment has a cost of $542,500 and a useful life of 7 years. Annual cash sales from…

A: 1) Calculation of NPV (in case of investment before tax):   Year 1 2 3 4 5 6 7   Sales 219202…

Q: B Company is considering two alternative ways to depreciate a proposed investment. The investment…

A: For computing the PV Factor value, the formula mathematically can be used is:

Q: An asset is considering the purchase of a new equipment. This equipment will cost $100,000 and will…

A: Depreciation using MACRS -  Allows depreciation over stated recovery period that is generally…

Q: Part a) Use a 10% MARR to determine the economic service life (ESL) of a defender asset (and the…

A: Given, First cost = $70,000 annual operating cost (AOC) = $20,000 per year Maximum remaining useful…

Q: Assume that a company has provided the following information regarding a capital investment…

A: Present value of a future amount With discount rate (r), period (n) and future amount (F), the…

Q: equipment has a useful life of five years and a residual value of $75,000. Depreciati using the…

A: Accounting rate of return can be computed using the following formula : ARR=Average net…

Q: An asset with a first cost of $250,000 and a 5-year recovery period is subject to MACRS…

A: Given Cost - 250000 life - 5 years MACRS method of depreciation   Depreciation:   years   1 2 3…

Q: $210,000 with a $30,000 salvage value at the end of its ten-year life. If annual cash inflows are…

A: Payback period is the no. of years required to recover the initial amount invested

Q: For the cash flows shown, determine the incremental cash flow between machines B and A for (a) year…

A: Life of A is 3 years and life of B is 4 years. Hence, in year 3, A will be replaced with the first…

Q: Rihanna Company is considering purchasing new equipment for $333,700. It is expected that the…

A: Payback period: Payback period is the time in which an investment reaches its break-even point. In…

Q: An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its total…

A: Depreciation: Due to usage, passes of time, obsolete and accident reduction in the value of fixed…

Q: An equipment cost P60,000 today and its salvage value is P20,000 after 6 years . Calculate its…

A: Depreciation is defined as the decrease in the value of the fixed assets over their useful life. It…

Q: The following data pertain to Sunlight Corp., whose management is planning to purchase an automated…

A: Net Present Value- The difference between the current value of cash inflows and withdrawals over a…

Q: The information below relates to the purchase of equipment: investment in the project: $10,000 Net…

A: Capital budgeting is a financial technique that helps to evaluate long-term capital projects that…

Q: Dragonfly, Inc. is evaluating two possible investments in depreciable plant assets. The company uses…

A: The following computations are done in the records of Dragonfly Incorporation to evaluate the…

Q: An asset with a first cost of $250,000 and a 5-year recovery period is subject to MACRS…

A: Answer has been given in the next sheet.

Q: Azimuth Company was considering the purchase of equipment. Details on the equipment are as follows:…

A:

Q: Years Asset - M Asset - N Year 1 3,000 Year 2 1,000 4,000 Year 3 1,000 1,000 Year 4 1,000 2,000

A: The discounted payback period is the time in years it takes the discounted cash flows of the project…

Q: The following table summartzes the financial data for a proposed new asset. The issue is how long…

A: Given Information :   Year 0 1 2 3 Investment Cost  $ (14,000.00)       O&M cost    $…

Q: The following information Company: available for a potential investment for Rose   Initial…

A: NPV = P36224 Initial investment = P80000

Q: An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000.…

A: C = 50,000 S = 8,000 Life expectancy = 6 Depreciated value = D

Q: a. Calculate the terminal cash flow for a usable life of (1) 3 years, (2) 5 years, and (3) 7 years.…

A: Profit form sale of proposed asset = $ 10,200 Tax on sale of proposed assets = profit*(1-t)…

Q: For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear…

A: a)

Q: RLC Manufacturing is planning to purchase a cutting equipment. Information are as follows:…

A: PV is the current worth of cash flows that are expected to occur in the future.