A machine that was used for 8 years has a market value of $2500 now, which decreases by $100 each year for the next 5 years. Maintenance costs this year are $5k, and for the next 5 years they are estimated at $6k, $7k, $8k and $9k. Determine the marginal cost of extending the service for two years if the MARR is 12%. Fill the whites with the results. a) Fill the whites: The loss of value in the market in year 2 is $ . The loss in interest in the year 2 $ . The Marginal Cost in year 2 is $ b) If the minimum EUAC of the machine is $5500, when should the machine be replaced? Anus (0.1.2.34 or 5)
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- Allen Construction purchased a crane 6 years ago for $130,000. They need a crane of this capacity for the next 5 years. Normal operation costs $35,000 per year. The current crane will have no salvage value at the end of 5 more years. Allen can trade in the current crane for its market value of $40,000 toward the purchase of a new one, which costs $150,000. The new crane will cost only $8,000 per year under normal operating conditions and will have a salvage value of $55,000 after 5 years. If MARR is 20%, determine which option is preferred. a) Use cash flow approach (insider's viewpoint approach) b) Use the opportunity cost approach (outsider's viewpoint approach)The White Swan Talc Company paid $120,000 for mining equipment for a small talc mine. The mining engineer's report indicates the mine contains 40,000 cubic meters of commercial- quality talc. The company plans to mine all the talc in the next 5 years as follows: Year Talc Production (m³) 1 15,000 11,000 4,000 6,000 2 4 15 4,000 At the end of 5 years, the mine will be exhausted and the mining equipment will be worthless. The company accountant must now decide whether to use double declining balance depreciation or unit- of-production depreciation. The company considers 15% to be an appropriate time value of money. (a) Which would you recommend? How much better is the present worth for the recommended choice? 3.Show your complete solution. 19. A machine cost 7,350 has a life of 8 years and has a salvage value of 350 at the end of a years. Determine its book value at the end of 4 years using Constant- Percentage of Declining Value.
- te You must decide whether to buy a new car for $21,000 or lease thesae car over a three year period Under the tarms of the lease, you can make a down payment value. is it less expensive to buy or to lease? The cost for buying the car and selling it after three years of $1000 and have mondly payments od $200 Al the end of the the leased car has a residual value (the amount you pay it you choose to buy the car at the end of the lease period) of $13,00O. Assume you c can sell the new car at the end of the three years at the same residual would be $2. One year ago, a machine was purchased at a cost of $2,000, to be used for 6 years.However, the machine has failed to perform properly and has a cost of $500 per year forrepairs, adjustments, and shutdowns. A new machine is available to accomplish thefunctions desired and has an initial cost of $3,500. Its maintenance costs are expected tobe $50 per year during its service of 5 years. The approximate market value of the presentmachine has been roughly $1,200. If the operating cost (other than maintenance) for bothmachines are equal, show whether it is economical to purchase the new machine. Performa before-tax study, using an interest rate of 12% and assume that the salvage values will benegligible.uppose that you purchased a HVAC system five years ago for $75, 000. The O&Mcosts are $15, 000 this year and are expected to increase by $1, 000 each year for the next five yearsthen remain the same for the following years.The current salvage value of the system is $15, 000; salvage value after one year is estimated tobe $12, 000; after two years, $11, 000; after three years, $10, 000; after four years, $9, 000; and so on.A new industrial HVAC system is available for purchase at a price of $95, 000, including instal-lation. The market value of the new system will decrease at a rate of 15% each year. The O&Mcosts are expected to be $1, 000 in the first year, and will increase at a rate of 20% each year. Themaximum service life of the new system is 10 years. Assume that your company uses an interestrate of 10% for all project evaluations.(a) Find the remaining economic life of the currently owned asset.(b) What is the economic service life of the new system?(c) Use the…
- Quèstion 25 An equipment costing P 360 000 has an estimated scrap value of P 25,000 at the end of its economic life of 11 years. Using Double-Declining Balance Method, what is the book value after 7 years? Exprees your answer in whole number. « > A Moving to another question will save this response. acer Prtsc Pause Del Home F8 F9 F10 F11 F12 F4 F5 F6 F7 Scr Lk SysRq Break F3 Coca-Cla % & -Backspac € 6 7 8 9 5 W R Y HKontrol paneli > Derslerim > 2020-2021 Güz Dönemi > İŞLETME FAKÜLTESİ > İŞLETME > 2021G-ITB101-1252178 > ITB 101 - Final Exam > ITB 10 曲 Kontrol paneli Site ana sayfası Takvim Nişanlar Tüm dersler Course dashboard Soru 17 The Farley Farm, a dairy company, has total costs of $15,000 and total variable costs of $2,000. The Farley Farm's total fixed costs are Henüz cevaplanmadı 4 üzerinden Lütfen birini seçin: işaretlenmiş O A. indeterminate because the firm's output level is not known. P Soruyu işaretle O B. SO O C$ 15000 O D.$ 13000 O E$ 17000 ÖNCEKİ SAYFA SONRAKİ SAYFA O Aramak için buraya yazınA machine cost P480, 000 and has a salvage value of 10% of its cost at the end of its life of 30,000 operating hours. 1. Determine its book value after using 4000 hrs. a. P 422 400.00 b. P340430.00 c. P 135 180.00 d. P 256 620.00 2. If the machine can produce 50,000 units in its entire life, determine the book value after producing 20 000 units. a. P307 200 b. P326 000 c. P288 000 d. P190 100
- date period In Santa Barbara, the sales tax is 7.55%. What would be the final cost of a surfboard if it was being sold for $1,200 ?IN-N-OUT BURGER An increase in demand causes the profit on a competition sail to rise to $260. How does that change the number of sails of each to be manufactured and the maximum profit? 02017 In-N-Out BurgeSacramento Cab Company owns several taxis that were purchased for $25,000 each 4 years ago. The cabs’ current market value is $12,000 each, and if they are kept for another 6 years they can be sold for $2000 per cab. The annual maintenance cost per cab is $1000 per year. Sacramento Cab has been approached about a leasing plan that would replace the cabs. The leasing plan calls for payments of $6000 per year. The annual maintenance cost for each leased cab is $750 per year. Should the cabs be replaced if the interest rate is 10%?The local telephone company purchased four special pole hole diggers 8 years ago for $14,000 each. Owing to an increased workload, additional machines will soon be required.