5.6 Historical and Exponential Depreciation 1. Sandi's new car cost her $24,000. He was told that this make and model depreciates exponentially at a rate of 9.5% per year. How much will her car be worth after 63 months?
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- 24. Steven found that the value of his new car is currently $31,200 and willdepreciate 6.9% per year. Based on the rate of depreciation, find the value ofhis car in 5 years. A. $21,822.42B. $20,436.00C. $6,240.00D. $15,600.00Suppose a new car is purchased for $41,357 and depreciates by 21% over the first year of ownership. Find the depreciation of the car over the first year. $… If the car is driven 12,870 miles in that year, what is the cost, in dollars per 100 miles driven, for depreciation? (Round your answer to the nearest cent.) …? Dollars per 100 miles8 An electronics balance costs P84,000 and has an estimated salvage value of P6,000 at the end of its 14 years lifetime. What would be the depreciation after three years, using the sum of the years digit in solving for the depreciation? Express your answer in whole number.
- Suppose a new car is purchased for $61,000 and depreciates by 28% over the first year of ownership. If the car is driven 14,400 miles in that year, what is the cost (in dollars) per mile for depreciation. Round your answer to the nearest cent.Suppose a new car is purchased for $45,357 and depreciates by 21% over the first year of ownership. If the car is driven 12,470 miles in that year, what is the cost, in dollars per 100 miles driven, for depreciation? (Enter a number. Round your answer to the nearest cent.) dollars per 100 miles)Suppose a new car is purchased for $45,357 and depreciates by 21% over the first year of ownership. If the car is driven 12,870 miles in that year, what is the cost, in dollars per 100 miles driven, for depreciation? (Enter a number. Round your answer to the nearest cent.)
- 14) Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $11.2 million, of which 75% has been depreciated. The used equipment can be sold today for $3.2 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. ________$8. A company pays one of its employees $800 per week. How much is the amount withheld from his pay for Social Security taxes? Group of answer choices A.$49.60 B.$11.60 C.$61.20 D.$34.52 9.Squeaky Clean laundromat purchased $6,000 worth of washing machines which are expected to last for 5 years, at which time they will have a trade-in value of $1,000. Calculate the annual depreciation using the straight line depreciation method. Group of answer choices A.$1,200 B.$1,150 C.$1,000 D.$950 10. On July 1, 2017, a company purchased a delivery van for $32,000. In five years, when they trade in the van, they will receive $3,000 toward the purchase of the next model. Using the straight-line method of depreciation, how much will they be allowed to depreciate during the first year? Group of answer choices A.$6,400 B.$5,800 C.$3,200 D.$2,900 ABC Company purchased a $65,000 piece of equipment which had an expected life of 10 years and a scrap value…You bought a car 5 years ago for $30,000. This type of car is known to depreciate at a compounded annual rate of 8% per year (given normal mileage and wear-and-tear). If your car depreciated at this rate, how much is it worth today? (Hint: let r = -0.08 and solve for FV).
- Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a salvage value of $5,000. It will produce $45,000 in net revenue each year during its life. All dollar amounts are expressed in actual dollars. Depreciation follows MACRS 7-year property, taxes are 25%, the actual aftertax MARR is 14.62%, and inflation is 4.2%. Solve, a. Determine the real after-tax cash flows for each year. b. Determine the PW of the after-tax cash flows. c. Determine the AW of the after-tax cash flows. d. Determine the FW of the after-tax cash flows. e. Determine the real IRR of the after-tax cash flows. f. Determine the real ERR of the after-tax cash flows. g. Determine the combined IRR of the after-tax cash flows. h. Determine the combined ERR of the after-tax cash flows.What is the cost per mile over the course of a year for a $30000 car that depreciates 20%?Q5: Oman Flour mills purchased an equipment and it will be depreciated in such a way that the value of equipment at the end of any year is 90% of the value at the beginning of the year. The actual cost of the machine is OMR 20,000. a) What will be the scrap value of the equipment if the estimated useful life of the equipment is 6 years? b) After 6 years, the company got an offer to sell the scrap at a value of OMR 8,000. Shall company accept the offer? Discuss and give reasons to your answer.
