If an asset costs $65,000 and is expected to have a $5,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $5,000 each year, the cash payback period is

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: maintenance costs of this equipment are estimated to be about $25,000 per year. Salvage value is…

A: EUAC is uniform annual equivalent cost that is equivalent to all costs of equipment.

Q: A surface mount PCB placement/soldering line is to be installed for $1.6 million. It will have a…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: What is the capitalized cost of a calendering machine that costs ₱1231,000 upon purchase, requires…

A: Initial cost (X) = P 1231000 Annual cost (A) = P 412000 Replacement cost (R) = P 89000 every 5 years…

Q: Determine the capitalized cost of a project that cost P324,000 with an anticipated salvage value of…

A: Given That: Fixed Cost=Replacement Cost=P324000 i=8%=0.08 Salvage Value=P50000 Maintenance…

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: uipment that will increase revenue by P94,500 a year requires an investment of P430,000. It is…

A: Future value of any investment gives the compound interest and principal. Gives decision making in…

Q: Compute the present equivalent cost of a machine tool that costs $10,000 initially plus $500 for…

A: Present value is the today's value of the future money computed at a given specified discounted…

Q: Company AMP wants to determine the net present value of one of its systems when cost of capital is…

A: The net present value of a project can be defined as the current value of positive and negative cash…

Q: A machine which costs P100,000 when new has a lifetime of 15 years and a salvage value equal to 20%…

A: Capital recovery can be calculated by using given equation below Capital recovery =Initial cost…

Q: An equipment costing P120,000 is expected  with an estimated economic life of 6 years,  salvage…

A: The question is related to Capital Budgeting. The Net Present Value will be calculated with the help…

Q: The net present value would be? ₱ 188,806 ₱ 324,989 ₱ 212,550 ₱ 299,250 ₱ 126,700 ₱ 258,684

A: Net Present Value: It is a metric used in capital budgeting to value the project's worth. Net…

Q: Compute the present equivalent cost of the equipment using 10% interest. (capitalized cost)

A: Present Worth: It is the present value of the discounted cashflows for a period of time.…

Q: An investment of $20,000 for a new condenser is being considered. Estimated salvage value of the…

A: Capital budgeting is a technique that helps to analyze that which project is profitable and which…

Q: What is the capitalized cost of an asset that has a purchasing cost of P500,000.00 and needs a…

A: Formula of present value of annuity (upgrading cost) used in the solution is:

Q: The purchasing price of the second-hand bulldozer is $100,000. It will have 8 years service life…

A: The present value of all costs is divided by the present value annuity factor.

Q: A manufacturer is contemplating the purchase of either of two machines at a cost of Kshs 155 million…

A: Cost of Capital (r) = 15% p.a. Initial Outflow of Machines Machine A= 155 Machine B= 180 Calculation…

Q: A machine which costs $100 000 when new has a lifetime of 15 years and a salvage value equal to 20%…

A: 7.26 Initial investment (I) = $100,000 Salvage value (S) = 5% of cost…

Q: An automation asset with a high first cost of $10 million has a capital recovery (CR) of $1,985,000…

A:

Q: A machine which costs P100, 000 when new has a lifetime of 15 years and a salvage value equal to 20%…

A: In the business sector, capital recovery has numerous different meanings. It is largely concerned…

Q: An asset which has a first cost of RM 40,000 is expected to have an annual operating cost of RM…

A: Data given: First cost =RM 40,000 Annual operating cost = RM 15,000 Rate=20%

Q: A drill press was purchased 4 years ago for $40,000. Its estimated salvage value after 7 years was…

A: Purchase price- $40,000 with various sale price Salvage value after 7 years- $5000 Annual operating…

Q: If an asset costs $26,280 and is expected to have a salvage value of $3,104 at the end of five year…

A: Cost = $ 26280 Salvage value = $ 3104 Period = 5 Years Annual cash inflow = $ 5675

Q: The new delivery truck is worth a total of Php 7.4M, with a residual value after 8 years is Php…

A: In a diminishing balance method of depreciation, higher depreciation is charged in the initial years…

Q: An equipment costing ₱600,000, with a residual value of ₱30,000 at its useful life of five years, is…

A: Net Present Value(NPV) is amongst one of the modern techniques of capital budgeting which considers…

Q: Enerlam Company purchased a machine with an estimated useful life of seven years. The machine will…

A: Net present value  = Present value of future cash inflows- initial investment

Q: A 2-ton hydraulic press is needed to add to production. This equipment has an initial purchase and…

A: Initial Purchase and Installation Cost 190000         Yearly Operation Cost 1000…

Q: If an anset costs $50600 and is expected to have a $4900 salvage value at the end of its 9-year…

A: cash flow statement is a financial statement which provides data of all the cash inflows form…

Q: If an asset costs $70,950 and is expected to have a salvage value of $949 at the end of five year…

A: The salvage value means the value of machinery that remains after it completes its life. The payback…

Q: Compute the capitalized cost of a new car worth P800,000.00 if it is estimated that it requires…

A: New car cost (C) = P 800000 Annual cost (A) = P 20000 Salvage value (S) = P 300000 n = 5 years r =…

Q: An asset is planned to be purchased with an initial value of $400,000 and an estimated salvage value…

A: Discounting is a technique which is used to compute the present value (PV) of future cashflows by…

Q: Alternative X has a first cost of $30,000, an operating cost of $9,000 per year, and a $5,000…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: DRAW CASH FLOW DIAGRAM A manufacturing plant installed a new boiler at a cost of P150, 000 and…

A: The net amount of cash and cash equivalents being transferred in and out of a company is referred to…

Q: per year for the first 10 years and $1000 per year, for the 10 years past the initial maintenance…

A: The current value of a future sum of money or stream of cash flows, given a specified rate of…

Q: s of $40,000 each year, the cash payback period is

A: Cash Payback Period = Initial Investment/Annual Cash Inflows      = 240000/40000      = 6 YEARS

Q: If the first cost of an asset is $15,000, and an annual operating cost of $5000 with a salvage value…

A: First cost = $15,000 Annual operating cost = $5000 Salvage value = $3000 Time period = 5 years…

Q: A piece of equipment has a first cost of $75000, a maximum useful life of 4 years, and a market…

A: SOLUTION- GIVEN, COST = $75000 USEFUL LIFE =4 YEARS INTEREST RATE = 9 %

Q: The initial cost of a new m/c is $10,000. The annual operating cost is $1,000/yr for first 3 years,…

A: The question is based on the concept of calculating Equivalent Uniform Annual Cost (EUAC) for a…

Q: You are given opportunity to purchase product for $42, 000. The product will have annual operating…

A: A project should earn enough revenue in order to cover the costs incurred.

Q: A project requires an initial investment of $45,000, has a salvage value of $12,000 after six years,…

A: capital recovery refers to the time when the amount initially invested would be returned through the…

Q: A new equipment is being considered at a local company at a cost of $200,000. The operation and…

A: Computation of EUAC for this equipment is as follows:

Q: A machine costs $300,000 with a salvage value of P50,000 at the end of its life of 10 years. If…

A: Sinking fund method is one of the method of depreciation under which the funds would be accumulated…

Q: An equipment was purchased now at P10,000,000.00 prevailing interest rate is 10% per year. Solve the…

A: “Since you have posted a question with multiple sub-parts, we will solve the first subpart for you.…