Homework Help is Here – Start Your Trial Now!
Business
Accounting
Question 4 Assume that there is a machine, with a cost of P171,307, 2/3 depreciated on a straight-line basis, with a book value of P41,603 and with a remaining useful life of 5 years. The old machine has a P1,032 disposal value now; in 5 years its disposal value will be zero. A new machine is available that will dramatically reduce operating costs. Annual revenue of P133,301 will not change regardless of the decision. The new machine will cost P61,813 have zero disposal value at the end of its 5-year life. The new machine promises to slash variable operating costs from P52,521 per year to P80,000 per year. What is the total cost if the equipment will be replaced? Consider that old machine can be sold. Use comma as necessary. Answer should only be an integer. No need to indicate currency in answer.

Question 4 Assume that there is a machine, with a cost of P171,307, 2/3 depreciated on a straight-line basis, with a book value of P41,603 and with a remaining useful life of 5 years. The old machine has a P1,032 disposal value now; in 5 years its disposal value will be zero. A new machine is available that will dramatically reduce operating costs. Annual revenue of P133,301 will not change regardless of the decision. The new machine will cost P61,813 have zero disposal value at the end of its 5-year life. The new machine promises to slash variable operating costs from P52,521 per year to P80,000 per year. What is the total cost if the equipment will be replaced? Consider that old machine can be sold. Use comma as necessary. Answer should only be an integer. No need to indicate currency in answer.

Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter12: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 10P: REPLACEMENT ANALYSIS The Dauten Toy Corporation currently uses an injection molding machine that was...
See similar textbooks
icon
Related questions
Question
Solutions only thank you.
Question 4 ject to explanation. Assume that there is a machine, with a cost of P171,307, 2/3 depreciated on a straight-line basis, with a book value of P41,603 and with a remaining useful life of 5 years. The old machine has a P1,032 disposal value now; in 5 years its disposal value will be zero. A new machine is available that will dramatically reduce operating costs. Annual revenue of P133,301 will not change regardless of the decision. The new machine will cost P61,813 have zero disposal value at the end of its 5-year life. The new machine promises to slash variable operating costs from P52,521 per year to P80,000 per year. What is the total cost if the equipment will be replaced? Consider that old machine can be sold. Use comma as necessary. Answer should only be an integer. No need to indicate currency in answer. W
Transcribed Image Text:Question 4 ject to explanation. Assume that there is a machine, with a cost of P171,307, 2/3 depreciated on a straight-line basis, with a book value of P41,603 and with a remaining useful life of 5 years. The old machine has a P1,032 disposal value now; in 5 years its disposal value will be zero. A new machine is available that will dramatically reduce operating costs. Annual revenue of P133,301 will not change regardless of the decision. The new machine will cost P61,813 have zero disposal value at the end of its 5-year life. The new machine promises to slash variable operating costs from P52,521 per year to P80,000 per year. What is the total cost if the equipment will be replaced? Consider that old machine can be sold. Use comma as necessary. Answer should only be an integer. No need to indicate currency in answer. W
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Asset replacement decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Fundamentals of Financial Management, Concise Edi…
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781305635937
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781285867977
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals of Financial Management, Concise Edi…
Fundamentals of Financial Management, Concise Edi…
Finance
ISBN:
9781285065137
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS