Calculate the residual value of an oven in a bakery, whose installed cost is $40000. The machine is depreciated for 5 years at the rate of 20% per annum using the reducing balance method.
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Calculate the residual value of an oven in a bakery, whose installed cost is $40000. The machine is
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- A bulldozer was bought for ₱ 0.50M and have an estimated useful life of 10 years after which itwill have a scrap value of ₱0.05M. Repair and maintenance is placed at ₱ 35T annually, while cost for fuel,oil, lubricant and operator plus helper will be ₱ 12T monthly. Determine the following: What is the annual cost using the straight line method for computing depreciation when the minimumattractive rate of return is 8%?An oven at a bakery is being considered for replacement. Its salvage value and maintenance costs for several years are given in the table below. The first cost of a new oven is $80,000, including installation, with a MARR of 10%. What is the economic service life for this oven? Year Salvage value at end of year Maintenance costs 0 $20,000 $ 1 75,000 500 2 70,000 500 3 66,000 1000 4 62,000 3000A high-precision programmable router for shaping furniture components is purchased by Henredon for $190,000. It is expected to last 12 years and have a salvage value of $5,000. Calculate the depreciation deduction and book value for each year. Use declining balance depreciation with a rate that ensures the book value equals the salvage value.
- A machine is purchased for $6500. It is expected to last 8 years and have a residual value of $700. What is the annual straight-line depreciation amount? The machine will depreciate $(blank) per year.A manual press costs $16,000, and it will be scrapped after 10 years. Compute the depreciation and book value for the first two years using 100% bonus depreciation.A machine costing P 95,000 is expected to produce 10,000 units of a certain products during its entire life before being replaced. At the end of its life, it will have a scrap value of P 5,000. The cost of housing the machine is P 2,500 a year. The power consumption per unit is P 0.90 and the maintenance of the machine per unit will be P 0.70. Labor costs P 3.50 per unit. If depreciation is by declining balance method, determine the cost per unit in its 3rd year of operation if the annual production is 2500 units.
- An assembly operation at a software company currently requires $100,000 per year in labor costs. A robot can be purchased and installed to automate this operation, and the robot will cost $200,000 with no MV at the end of its 10-year life. The robot, if acquired, will be depreciated using SL depreciation to a terminal BV of zero after 10 years. Maintenance and operation expenses of the robot are estimated to be $64,000 per year. Thecompany has an effective income tax rate of 40%. Invested capital must earn at least 8% after income taxes are taken into account. Solve, a. Use the IRR method to determine if the robot is a justifiable investment. b.If MACRS (seven-year recovery period) had been used in Part (a), would the after-tax IRR be lower or higher than your answer to Part (a)?A certain type of machine loses 10% of its value each year. The machine cost P2,000 originally. Make out a schedule showing the yearly depreciation, the total depreciation, and the book value at the end of each year for 5 years.A machine costing P720,000 is estimated to have a life of 10 years. If the annual rate of depreciation is 25%, determine the total depreciation at the tenth year using a constant percentage of the declining balance method.
- A new bottle-capping machine costs 64,000, including 8,000 for installation. The machine is expected to have a useful life of eight years with no salvage value at that time (assume straight-line depreciation). Operating and maintenace costs are expected to be 4,000 for the first year, increasing by 1,500 each year thereafter. Interest is 13%. Construct a spreadsheet that has the following headings: Year, Salvage Value, Maintenance Costs, EAC (Capital Costs), EAC (Operating Costs), and EAC (Total Costs). Compute the EAC (Total Costs) if the bottle capper is kept for n years, n = 1,...,8. What is the economic life of the bottle capper (in years)? Number Complete the row of the table indicating the economic life for this project NOTE: Use 5 significant figures in your calculations, and round your answers for the table below to the nearest dollar. Year Number Salvage Number Maintenance Number EAC Capital Number EAC Maintenance Number EAC Total NumberAn old machine may be repaired at a cost of P 9,000 or it may be replaced by a modern machine of the same size at a cost of P 57,000. The present net salvage value of the old machine is P 13,000. It is estimated that the repaired machine will last for 5 more years with a net salvage value of P 10,000 and that of the new machine will be P 15,000 after 30yrs. The annual cost of maintenance and operation on the repaired machine will be P 1,500 more per year than for the new machine. Assuming a return of 8% and depreciation on a straight line basis, determine whether it is more economical to repair the machine or replace it instead. Use ROR method.A laser surgical tool has a cost basis of $200,000 and a five-year depreciable life. The estimated SV of the laser is $20,000 at the end of five years. Determine the annual depreciation amounts using the SL method. Tabulate the annual depreciation amounts and the book value of the laser at the end of each year.