A new machine costs $42,000 and has a $2000 salvage value at the end of its...

A new machine costs $42,000 and has a $2000 salvage value at the end of its 8-year useful life. Determine the straight-line (SL), and the double declining balance (DDB) depreciation schedules for the machine.

Expert Solution

Rahul Sunny answered 1 year ago

A machine costs Php 332,631 with a salvage value of Php 44,647 at the end of...

A machine costs Php 332,631 with a salvage value of Php 44,647 at the end of its life of 11 years. If money is worth 5% annually, use Sinking Fund Method and determine the depreciation at the 2th year. MANUAL SOLUTION PLEASE

4) Machine A costs $35,000, lasts 3 years and has a salvage value of $7,500. Machine...

4) Machine A costs $35,000, lasts 3 years and has a salvage value of $7,500. Machine B costs $25,000, lasts 2 years and has a salvage value of $3,500. The machines can be purchased at the same price with the same salvage value in the future, and are needed for a 6 year project. Which machine would you purchase and why? Provide justification using an Annualized Equivalent Cost analysis. Interest is 10% annual rate, compounded annually. Answer______________________________________

A depreciable asset costs $10,000 and has an estimated salvage value of $1600 at the end...

A depreciable asset costs $10,000 and has an estimated salvage value of $1600 at the end of its 6-year depreciable life. Compute the depreciation schedule for this asset by both SOYD depreciation and DDB depreciation.

Polycorp is considering the purchase of a machine for $600,000. The salvage value at the end...

Polycorp is considering the purchase of a machine for $600,000. The salvage value at the end of its three-year life is $100,000. Annual cash operating revenues are $700,000, $600,000 and $550,000 in years 1, 2 and 3, and cash expenses (before interest) are $300,000, $250,000 and $200,000 respectively. The machine will be depreciated for tax purposes using straight-line depreciation of 25% per year. Assume a corporate tax rate of 30% (tax is paid in the year the income is earned)....

A machine costs Rs. 10,000 with useful life of 5 years. It has a salvage value...

A machine costs Rs. 10,000 with useful life of 5 years. It has a salvage value of Rs. 2,000 at the end of its useful life. The machine is expected to generate the following cash flows; Year Cash Flow (PKR) 1 5,000 2 6,000 3 8,000 4 6,500 5 4,000 Calculate Accounting Rate of Return? Tax is applied at 30% per annum. Why Accounting Rate of Return is not among the favorite methodology to evaluate a project? In what circumstances...

A machine costs $460,000, has a $36,000 salvage value, is expected to last eight years, and...

A machine costs $460,000, has a $36,000 salvage value, is expected to last eight years, and will generate an after-tax income of $100,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) A new operating system for an existing machine is expected to...

A machine cost $30,000 initially and has no salvage value. The O&M costs in year 1...

A machine cost $30,000 initially and has no salvage value. The O&M costs in year 1 were $10,000 and have been increasing by $2,000 from year 2. The minimum cost life of this machine for a MARR of 10 %. (show your solution) A. 4 years B. 2 years C. 6 years D. None of above

Question 14 A machine initally costing $520000 will have salvage value of $2000 after a 6...

Question 14 A machine initally costing $520000 will have salvage value of $2000 after a 6 year life. using double declining balance depreciation what will the book value be after the third year

A company ,purchases a new machine with an initial cost of $15,000 and a salvage value...

A company ,purchases a new machine with an initial cost of $15,000 and a salvage value of $1,800. Net revenues in year 1 are $ 8,000,$8,150 in year 2, and increase by $150 each year the following eight years. Use a MARR of 12% . a. What is the annual worth ? b. Determine the IRR of this machine please show detailed and clear solution with or without using EXCEL. thank you

Machine A has an initial cost of $19,500 and a salvage value of $7500 (today's value)...

Machine A has an initial cost of $19,500 and a salvage value of $7500 (today's value) at the end of its 12 year life. Machine B has an initial cost of $17,900 and a salvage value of $2300 (today's value) at the end of it's 6 year life. Inflation is 3.9% Don’t forget, we will need to increase the costs and salvage values by inflation for any transaction other than year 0. The company uses a MARR rate of 14% ...

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