![Engineering Economy](https://www.bartleby.com/isbn_cover_images/9780133582819/9780133582819_largeCoverImage.jpg)
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 13P
(a):
To determine
Calculate the
(b):
To determine
Calculate the present worth.
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
A machine costs Php 300,000 with a salvage value of Php 50,000 at the end of its life of 10
years. If money is worth 6% annually, use Sinking Fund Method and determine the
depreciation at the 6th year.
2.
A piece of machinery has a cost basis of $50,000 and salvage value will be $5000 after 9000 hours
of operation. With units of production depreciation, what is the allowable depreciation rate per
hour?
Last year aria left her job earning $82,000 per year in order to start her own cupcake business
Her expenses included rent of $1,500 per month, as well as $500 per month in supplies and utilities. She hired two workers at $1000 per month for each. She didn't want to rent a professional oven so she purchased one for $6500, She expects it to depreciate at the rate of $900 per year .
Over the course of the year, Aria sold 125,000 cupcakes with a revenue of $125,000
Aria is business savvy and knows she must control her costs in this market with so many firms, easy entry and identical products. Therefore she will only operate at her profit-maximizing or loss-minimizing level of output
Since you can't draw it, briefly describe how her mr curve looks and where you would draw it
What price will she charge
Is she earning profit? If so, how much? If not, should she shut down? Why or why not?
Chapter 7 Solutions
Engineering Economy
Ch. 7 - How are depreciation deductions different from...Ch. 7 - Prob. 2PCh. 7 - Explain the difference between real and personal...Ch. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10P
Ch. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - A manufacturer of aerospace products purchased...Ch. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Prob. 20PCh. 7 - Prob. 21PCh. 7 - Prob. 22PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25PCh. 7 - Prob. 26PCh. 7 - Prob. 27PCh. 7 - Prob. 28PCh. 7 - Prob. 29PCh. 7 - Prob. 30PCh. 7 - Prob. 31PCh. 7 - Prob. 32PCh. 7 - Prob. 33PCh. 7 - Prob. 34PCh. 7 - Prob. 35PCh. 7 - Prob. 36PCh. 7 - Prob. 37PCh. 7 - Prob. 38PCh. 7 - Prob. 39PCh. 7 - Prob. 40PCh. 7 - Prob. 41PCh. 7 - Prob. 42PCh. 7 - Prob. 43PCh. 7 - Prob. 44PCh. 7 - Prob. 45PCh. 7 - Prob. 46PCh. 7 - Prob. 47PCh. 7 - Prob. 48PCh. 7 - Prob. 49PCh. 7 - Prob. 50PCh. 7 - Prob. 51PCh. 7 - Prob. 52PCh. 7 - Determine the after-tax yield (i.e., IRR on the...Ch. 7 - A 529-state-approved Individual Retirement Account...Ch. 7 - Prob. 55PCh. 7 - Prob. 56PCh. 7 - Prob. 57SECh. 7 - Prob. 58SECh. 7 - Prob. 59SECh. 7 - Prob. 60SECh. 7 - Prob. 61FECh. 7 - Prob. 62FECh. 7 - Prob. 63FECh. 7 - Prob. 64FECh. 7 - Prob. 65FECh. 7 - Prob. 66FECh. 7 - Prob. 67FECh. 7 - Prob. 68FECh. 7 - Prob. 69FECh. 7 - Prob. 70FECh. 7 - Prob. 71FECh. 7 - Prob. 72FECh. 7 - Prob. 73FECh. 7 - Prob. 74FECh. 7 - Prob. 75FECh. 7 - If the federal income tax rate is 35% and the...Ch. 7 - Prob. 77FECh. 7 - Prob. 78FECh. 7 - Prob. 79FECh. 7 - Prob. 80FECh. 7 - Prob. 81FECh. 7 - Prob. 82FECh. 7 - Prob. 83FECh. 7 - Prob. 84FE
Knowledge Booster
Similar questions
- Last year aria left her job earning $82,000 per year in order to start her own cupcake business Her expenses included rent of $1,500 per month, as well as $500 per month in supplies and utilities. She hired two workers at $1000 per month for each. She didn't want to rent a professional oven so she purchased one for $6500, She expects it to depreciate at the rate of $900 per year . Over the course of the year, Aria sold 125,000 cupcakes with a revenue of $125,000 Aria is business savvy and knows she must control her costs in this market with so many firms, easy entry and identical products. Therefore she will only operate at her profit-maximizing or loss-minimizing level of output Total explicit costs for the year are Total implicit costs for the year are Total fixed costs for the year are Total variable costs for the year are Average total costs for the year are Total accounting costs for the year are Total economic costs for the year are Since you can't draw it,…arrow_forwardA consortium of international telecommunication companies contracted for the purchase and installation of fiber optic cable linking Manila and Cebu City at a total cost amount includes freight and installation charges estimated at 10% of the above contract price. If the cable shall be depreciated over a period of 15 years with zero salvage value and money is worth 6% per annum, what is the annual depreciation charge (d)? 3. P960M. Thisarrow_forwardLast year aria left her job earning $82,000 per year in order to start her own cupcake business Her expenses included rent of $1,500 per month, as well as $500 per month in supplies and utilities. She hired two workers at $1000 per month for each. She didn't want to rent a professional oven so she purchased one for $6500, She expects it to depreciate at the rate of $900 per year . Over the course of the year, Aria sold 125,000 cupcakes with a revenue of $125,000 Aria is business savvy and knows she must control her costs in this market with so many firms, easy entry and identical products. Therefore she will only operate at her profit-maximizing or loss-minimizing level of output Total explicit costs for the year are Total implicit costs for the year are Total fixed costs for the year are Total variable costs for the year are Average total costs for the year are Total accounting costs for the year are Total economic costs for the year are Since you can't draw it,…arrow_forward
- Last year aria left her job earning $82,000 per year in order to start her own cupcake business Her expenses included rent of $1,500 per month, as well as $500 per month in supplies and utilities. She hired two workers at $1000 per month for each. She didn't want to rent a professional oven so she purchased one for $6500, She expects it to depreciate at the rate of $900 per year . Over the course of the year, Aria sold 125,000 cupcakes with a revenue of $125,000 Aria is business savvy and knows she must control her costs in this market with so many firms, easy entry and identical products. Therefore she will only operate at her profit-maximizing or loss-minimizing level of output Total economic costs for the year are Since you can't draw it, briefly describe how her demand curve looks. Since you can't draw it, briefly describe how her mr curve looks and where you would draw it What price will she charge Is she earning profit? If so, how much? If not, should she shut down? Why…arrow_forwardA factory equipment has an initial cost of P200,000,00. It salvage value after 10 years is P20,000,00. As a percentage of the initial cost, what is the straight line depreciation rate of the equipment?arrow_forwardY=500TL,c=l% 80 and C=30 TL what is the comsumption.expendedure? %3Darrow_forward
- what will be the value of the net domestic product at the factor cost if the gross domestic product at the factor cost is $ 7766 and the depreciation is $ 1101arrow_forwardYour business buys a delivery van for $28,000. You figure the van will be useful for 5 years and have a value of $5,000 at the end of the 5-year period. What is the (a) basis, (b) useful life, (c) salvage value, (d) depreciable basis, (e) accumulated depreciation at the end of year 2 if you take $4,600 depreciation each year, and (f) the book value at the end of year 2?arrow_forwardA machine has an initial cost of P50,000 and a salvage value of P10,000 after 10 years. What is the straight-line method depreciation rate as a percentage of the initial cost? With Cash flow diagramarrow_forward
- Phones right now has a fast rate of depreciation because of newer models with upgraded specifications. The expected depreciation of phones is at a rate of 35%. If one unit cost P14,999, what will be its selling price after 2 years?arrow_forwardYou are evaluating two different silicon wafer milling machines. The Techron I costs $270,000, has a 3-year life, and has pretax operating costs of $73,000 per year. The Techron II costs $470,000, has a 5-year life, and has pretax operating costs of $46,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $50,000. If your tax rate is 24 percent and your discount rate is 10 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Techron I Techron IIarrow_forwardA time deposit of P150,000 for 31 days earns P900 on maturity date after deducting the 30% withholding tax on interest income. Find the rate of interest per annumarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education