One of the laboratories of the College of Engineering bought a with a purchase value machine of 50000 dollars, the life span of the machine is 5 years, the book value at the end of the life of the machine for the fifth year is 5000 dollars, the maintenance and operating costs for the first year are 1250 dollars, the second year is 1500 dollars, the third year is 1,750 dollars, the fourth year is 2000 dollars, and the fifth year is 2500 dollars, and the discount rate is 10 % Find the annual depreciation amount using the sum of the number of years of the useful life. Find the book value for each year. Find the time of replacement of the machine

One of the laboratories of the College of Engineering bought a with a purchase value machine of 50000 dollars, the life span of the machine is 5 years, the book value at the end of the life of the machine for the fifth year is 5000 dollars, the maintenance and operating costs for the first year are 1250 dollars, the second year is 1500 dollars, the third year is 1,750 dollars, the fourth year is 2000 dollars, and the fifth year is 2500 dollars, and the discount rate is 10 % Find the annual depreciation amount using the sum of the number of years of the useful life. Find the book value for each year. Find the time of replacement of the machine

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 14P

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One of the laboratories of the College of Engineering purchased a machine with a purchase value of $50,000. The life span of the machine is 5 years. The book value at the end of the life of the machine (fifth year) ($ 5000) maintenance and operating cost The first year ($ 1250) The second year (1500 $) The third year (1750 $) The fourth year (2000 $) The fifth year ($ 2500). 10% discount rate? 1- Find the amount of annual depreciation using the sum of the number of years of useful life 2- Find the book value for each year 3- Find the time of replacement of the machine
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