Question

In: Other

An equipment costs Rs. 1,70,000 and will have a scrap value of Rs. 25,000 at the...

An equipment costs Rs. 1,70,000 and will have a scrap value of Rs. 25,000 at the end of
its useful life of 10 years. If the interest is compounded at 10% per year, what are the cost
of replacement, the present worth and the capitalized cost?

Solutions

Expert Solution


Related Solutions

An equipment costing P 380,000 has an estimated scrap value of P 25,000 at the end...
An equipment costing P 380,000 has an estimated scrap value of P 25,000 at the end of its economic life of 10 years. Using Double-Declining Balance Method, what is the book value after 8 years? Express your answer in whole number.
A piece of equipment having a negligible salvage and scrap value if estimated to have a...
A piece of equipment having a negligible salvage and scrap value if estimated to have a MACRS and straight line recovery period of 5 years. The original cost of ther equipment was $500,000. Determin the depreciation charge of the euipment for the second yeqr if straight line depreciation is used and the percentage of the original investment paid off in the first 2 years.
A machine costs $17053 and is expected to have a scrap value of $2171 whenever it...
A machine costs $17053 and is expected to have a scrap value of $2171 whenever it is retired. Operating and Maintenance costs are $1517 for the first year and expected to increase by $1457 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years. Note: round your answer to two decimal places, and do not include spaces, currency signs,...
A machine costs $19650 and is expected to have a scrap value of $2387 whenever it...
A machine costs $19650 and is expected to have a scrap value of $2387 whenever it is retired. Operating and Maintenance costs are $1398 for the first year and expected to increase by $1853 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years.
A machine costs $17,026 and is expected to have a scrap value of $2,432 whenever it...
A machine costs $17,026 and is expected to have a scrap value of $2,432 whenever it is retired. Operating and Maintenance costs are $1,268 for the first year and expected to increase by $1,784 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years.
An industrial sewing machine costs $5389 and is expected to have a scrap value of $3570...
An industrial sewing machine costs $5389 and is expected to have a scrap value of $3570 whenever it is retired. Operating and Maintenance costs are $1585 for the first year and expected to increase by $2270 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years. Note: round your answer to two decimal places, and do not include spaces,...
An industrial sewing machine costs $5,641 and is expected to have a scrap value of $3,792...
An industrial sewing machine costs $5,641 and is expected to have a scrap value of $3,792 whenever it is retired. Operating and Maintenance costs are $1,038 for the first year and expected to increase by $2,612 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years.
A new piece of equipment costs $25,000. The annual cost of using the equipment is projected...
A new piece of equipment costs $25,000. The annual cost of using the equipment is projected to be $1000. Annual maintenance costs are expected to be $400 the first year, increasing by $75/yr each year after that. The effective annual interest rate is 5%. Using correct equivalence notation, write out (but do not solve) the equation that would be used to find the equivalent annual cost of purchasing the equipment for its 20-year lifespan.
Question text Computing Depreciation Expense. Equipment costing $580,000, with an expected scrap value of $60,000 and...
Question text Computing Depreciation Expense. Equipment costing $580,000, with an expected scrap value of $60,000 and an estimated useful life of 5 years, was purchased on January 1, 2012. Calculate the depreciation expense for years 2012 to 2016 using: (a) the straight-line method and (b) the double-declining-balance method. Round to the nearest whole number. 2012 2013 2014 2015 2016 Straight-line depreciation $Answer $Answer $Answer $Answer $Answer Double-declining balance (a) without straight-line switch-over $Answer $Answer $Answer $Answer $Answer (b) with straight-line...
Assume that you will buy and operate a piece of equipment. The machine costs $25,000. You...
Assume that you will buy and operate a piece of equipment. The machine costs $25,000. You estimate that the equipment will generate $10,000 revenue, each year for six years. You also estimate that operating costs for the machine will be $4,500 each year for six years. These estimates are in constant 2019 dollars. The inflation rate for revenues is estimated to be 3.5%. The inflation rate for operating costs is estimated to be 5.0%.   You will depreciate the machine using...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT