Mang Danny bought a piece of equipment for P1,000,000. He spent an additional amount of P300,000 for installation and other expenses. The salvage value is 15% of the first cost. If the book value at the end of 7 years will be P333,125 using SLM, compute the useful life of the equipment in years.
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- 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. P21,380.002Problem 5: An equipment has a first cost of P 7,000, has a life of 8 years and a salvage value of “ x “. Compute the value of “ x “ if the book value of the equipment at the end of 4th year is P 2,291.11. Use SYD Method.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 that costs P75 000.00 five years ago now cost P45 864.31, when 7% interest is applied using the sinking fund formula. Determine the salvage value of the machine for an estimated useful life of 10 years.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. $1814Peller machine losses 10% of its value each year. The machine costs P 2,000 originally. Find the book value at the end of 5 years. a. P1,312.20 b. P1,1180.98 c. P1,620.00 d. P1,458.00
- Hyundai 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.An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year. The maintenance and operating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life? 13-1 P Maint A Maint G (A/G, 10%, n) Salvage PV of S n EUAC-P EUAC-M EUAC-S EUAC Minimum? 1050000 235000 75000 225000 1 1050000 235000 75000 225000 2 1050000 235000 75000 225000 3 1050000 235000 75000 225000 4 1050000 235000 75000 225000 5 1050000 235000 75000 225000 6 1050000 235000 75000 225000 7 1050000 235000 75000 225000 8 Can you please teach how to calculate these number I don't know how to solve in excel I…
- The 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.The First cost of a passenger bus is ₽800,000. Its estimated life is 4 years with no salvage value. The operating cost per year of 300 days of operation are as follows: Tires, ₽24,000; gasoline, 60 liters per day at ₽15 per liter; Oil,₽80 per day; maintenance and repair, ₽40,000; labor ₽800 per day; miscellaneous expense, ₽18,000; depreciation, sinking fund at 10%. If the average passenger fare is ₽3.50 for each passenger one way and expected profit or return is 15% determine the minimum average number of passengers that should be transported each day. Use the AW method and Future worth method.A table planner machine which costs P 50 000 when brand new has a salvage value of x pesos and is expected to lasts for 23, 000 hours in a period of 5 years. In the first year of service it was used for 7 000 hours. What is the value of x if the book value of the machine at the end of first year is P 36 000? Show complete solution. Do not use excel A. 3 000 B. 5, 000 C. 4, 000 D. 2, 000