QUESTION 5 Software and hardware for optimizing the cell design of robotic picking lines have an installed cost of $78,000 with no residual value after 5 years. For years 2 and 4, use DDB (Double Declining Balance) book depreciation. The book value for year 2, (in $)
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- QUESTION 10 Software and hardware for optimizing the cell design of robotic picking lines have an installed cost of $78,000 with no residual value after 6 years. For years 2 and 5, use DDB (Double Declining Balance) book depreciation. The book value for year 2, (in $) Round to the nearest two (2) decimal placesProblem 3: A machine currently in use was originally purchased 2 years ago for $40,000. The machine is being depreciated under MACRS using a 5-year recovery period; it has 3 years of usable life remaining. The current machine can be sold today to net $42,000 after removal and cleanup costs. A new machine, using a 3-year MACRS recovery period, can be purchased at a price of $140,000. It requires $10,000 to install and has a 3-year usable life. If the new machine is acquired, the investment in accounts receivable will be expected to rise by $10,000, the inventory investment will increase by $25,000, and accounts payable will increase by $15,000. Earnings before depreciation, interest, and taxes are expected to be $70,000 for each of the next 3 years with the old machine and to be $120,000 in the first year and $130,000 in the second and third years with the new machine. At the end of 3 years, the market value of the old machine will equal zero, but the new machine could be sold to net…Problem 3: A machine currently in use was originally purchased 2 years ago for $40,000. The machine is being depreciated under MACRS using a 5-year recovery period; it has 3 years of usable life remaining. The current machine can be sold today to net $42,000 after removal and cleanup costs. A new machine, using a 3-year MACRS recovery period, can be purchased at a price of $140,000. It requires $10,000 to install and has a 3-year usable life. If the new machine is acquired, the investment in accounts receivable will be expected to rise by $10,000, the inventory investment will increase by $25,000, and accounts payable will increase by $15,000. Earnings before depreciation, interest, and taxes are expected to be $70,000 for each of the next 3 years with the old machine and to be $120,000 in the first year and $130,000 in the second and third years with the new machine. At the end of 3 years, the market value of the old machine will equal zero, but the new machine could be sold to net…
- Given the two machines' data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value Annual operation 2,000.00 3,000.00 2,400.00 Annual maintenance 1,200.00 1,000.00 Taxes and insurance 3% 3% Life, years 10 15 Money is worth at least 16% Using equivalent uniform annual cost method, determine the value of alternative A and alternative B: ANSWER for ALTERNATIVE A: Blank 1 ANSWER for ALTERNATIVE B: Blank 2Question 4 (CL03) Cost of an electronic gadget is your "SAP ID × 1000" PKR, whereas its useful life is 20 years. However, the gadget has been used only 7 months every 1.6 years. Calculate its annual depreciation charges and book values using declining-balance method. The constant multiplier is set as 20%. SAP ID = 3050A computer with a life of 13 years has the following cost and interest rate. What is the EUAC of the computer? initial cost $5500 salvage value annual maintenance $3100 years 1-8 years 9-13 interest rate $275 $425 6% Correct Answer: $780 Your Answer: n/a
- Question 17 options: 8-7. Disposal of asset. Dump It is selling a machine that no longer is large enough for the production requirements. Dump It has had the machine for 3 years and has depreciated it using the straight-line method. Original cost had been $98,000, and salvage was estimated at $6,000. The machine had been expected to last for 8 years. (in all answers round to nearest dollar; do not use "$" or commas in your answer)QUESTION 3 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% First cost, S Annual cost, $/year Salvage value, $ Life, years Machine A Answer the below questions: B-AW for machine B= First cost, $ Annual cost, $/year Salvage value, $ Life, years 15000 9752 4,000 Machine A Answer the below questions: C-AW for machine C = 15000 Machine B 15892 4,000 22023 QUESTION 4 For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%. 6,000 5,000 Machine B 30000 Machine C 6,000 5,000 10000 4,000 1,000 Machine C 11779 4,000 1,000Question 17 options: 8-7. Disposal of asset. Dump It is selling a machine that no longer is large enough for the production requirements. Dump It has had the machine for 3 years and has depreciated it using the straight-line method. Original cost had been $98,000, and salvage was estimated at $6,000. The machine had been expected to last for 8 years. (in all answers round to nearest dollar; do not use "$" or commas in your answer) Calculate the amount of annual depreciation on the asset. Calculate the amount of accumulated depreciation on the asset at the end of the third year. Calculate the book value of the asset at the end of the third year.
- Calculator A machine with a cost of $69,400.00 has an estimated residual value of $3,122.00 and an estimated life of 5 years or 17,047 hours. What is the amount of depreciation for the second full year, using the double declining-balance method? Select the correct answer. a-$26,511.20 b-$16,656.00 c-$13,880.00 c-$27,760.00Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) Calculate the following: Click here to access the various depreciation tables. If required, round your final answers to the nearest dollar. If your answer is zero, enter "0". c. The first year of depreciation on a computer costing $2,800 purchased in May 2020, using the half-year convention and straight-line depreciation with no bonus depreciation.$fill in the blank dfbf18f8d052045_1 d. The third year of depreciation on business furniture costing $10,000 purchased in March 2018, using the half-year convention and accelerated depreciation but no bonus depreciation.$fill in the blank f2779406dfe8021_1vvk.3 You are evaluating two different milling machines to replace your current aging machine. Machine A costs $236,244, has a three-year life, and has pretax operating costs of $67,855 per year. Machine B costs $417,560, has a five-year life, and has pretax operating costs of $32,660 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $35,626. Your tax rate is 34 % and your discount rate is 10 %. What is the EAC for Machine A?