Your roommate decides to buy an awesome computer for $10,000 atthe end of the year....

Your roommate decides to buy an awesome computer for $10,000 at the end of the year. He/she thinks the computer will last for 5 years. At the end of the first year, he/she upgrades the RAM (a component inside the computer) for $1,000 but it is only expected to last 3 years. At the end of the second year, he/she adds a new cooling system to the computer for $2,000 and it is expected to last for the remaining life of the computer.

What is depreciation in year 1?
What is depreciation in year 3?
What is depreciation in the final year?

Expert Solution

for finding out the straight line depreciation in excel, we have to use sln function as shown in picture. for finding total we can use sum function

depreciation in year 1 = $2000

depreciation in year 3 = $ 3000

depreciation in the final year = $ 2666.67

jeff jeffy answered 2 years ago

John Decides to make 10 end-of year deposits of $10,000 into a fund starting one year...

John Decides to make 10 end-of year deposits of $10,000 into a fund starting one year from now. He is planning to withdraw $20,000 each year for 5 years, starting one year after the last deposit. The fund pays 8% per year compounded annually. Determine the balance in the fund immediately after the last withdrawal.

Awesome Cookie Company had total credit sales for the past year of $800,000. As of year-end,...

Awesome Cookie Company had total credit sales for the past year of $800,000. As of year-end, but before estimating bad debts, the company had a $70,000 debit balance in accounts receivable and a $600 debit balance in the Allowance for Uncollectible Accounts. The company provided the following aging of accounts receivable schedule and estimates of the bad debts percentages: Age Amount Bad debt Percentage 1-30 days 38,500 10% 31-60 days 21,000 25% 61-90 days 6,300 40% Over...

You set up a college fund in which you pay $2500 each year atthe end...

You set up a college fund in which you pay $2500 each year at the end of the year. How much money will you have accumulated in the fund after 10 years, if your fund earns 8% compounded annually?

An employee working for Best Buy decides to stop working and start his own computer repair...

An employee working for Best Buy decides to stop working and start his own computer repair business. He enjoys an accounting profit in his first year of running the business. Which of these statements is correct? A. His accounting profit and economic profit will be the same. B. His accounting profit will be smaller than his economic profit. C. His accounting profit will be larger than his economic profit. D. More info is needed to know how His accounting profit...

Suppose you buy a bond that will pay $10,000 principal at the end of 10 years....

Suppose you buy a bond that will pay $10,000 principal at the end of 10 years. No coupon interest payments are made on the bond. (It is a zero coupon bond.) If the yield to maturity of similar zero coupon bonds is 6 percent per year: A. What is the current price of the bond? B. What will be the price of the bond if the market yield to maturity instantaneously increases to 8 percent per year? C. What will...

bob borrows $10,000 to be paid back over 30 years with level end of your year...

bob borrows $10,000 to be paid back over 30 years with level end of your year payments at an annual interest rate of x. The sum of principal repayment during year five and year 10 is equal to the amount of principle repaid during the year 15. find x

Nancy would like to accumulate $10,000 by the end of 3 years from now to buy...

Nancy would like to accumulate $10,000 by the end of 3 years from now to buy a sports car from her friend, Jim. She has $2,500 now and would like to save equal annual end-of-year deposits to pay for the car. How much should she deposit at the end of each year in an account paying 8 percent interest to buy the car?

Jake inherits a perpetuity that will pay him $10,000 at the end of the first year increasing by $10,000 per year until a payment of $150,000 is made at the end of the fifteen year.

Jake inherits a perpetuity that will pay him $10,000 at the end of the first year increasing by$10,000 per year until a payment of $150,000 is made at the end of the fifteen year. Paymentsremain level after the fifteenth year at $150,000 per year. Determine the present value of thisperpetuity, assuming a 7.5% annual interest rate.

Jake Werkheiser decides to invest $4000 in an IRA at the end of each year for...

Jake Werkheiser decides to invest $4000 in an IRA at the end of each year for the next 5 years. If he makes these investments, and if the certificates pay 8%, compounded annually, how much will he have at the end of the 5 years? (a) State whether the problem relates to an ordinary annuity or an annuity due. ordinary annuityannuity due (b) Solve the problem. (Round your answer to the nearest cent.) A family wants to have a $170,000...

Hampton Industries had $47,000 in cash at year-end 2015 and $10,000 in cash at year-end 2016....

Hampton Industries had $47,000 in cash at year-end 2015 and $10,000 in cash at year-end 2016. The firm invested in property, plant, and equipment totaling $270,000. Cash flow from financing activities totaled +$150,000. Round your answers to the nearest dollar, if necessary. What was the cash flow from operating activities? Enter cash outflows with a minus sign. $ If accruals increased by $15,000, receivables and inventories increased by $145,000, and depreciation and amortization totaled $27,000, what was the firm's net...

Question