The capitalized cost of a new printing equipment was found to be P426,000.00.The rate of interest was 12%, with a salvage value of P30,000.00 t the end of a service life of 8 years. Assuming that the cost of perpetual replacement remains constant, determine the original cost of the equipment.
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- QBS company wishes to replace its current equipment that was purchased 8years ago with the newer technology. System A will have a first cost of P1.6M, an operating cost of p70,000 per year, and a salvage value of P400,000 after its 4-year life. System B will have a first cost of P2.1M, an operating cost of P50,000 the first year with an expected increase of P3,000 per year thereafter, and no salvage value after its 8-year life. On the basis of a future worth analysis at an interest rate of 12% per year, write the: ANSWER for ALTERNATIVE A: ANSWER for alternative B:An equipment was purchased now at P10,000,000.00 prevailing interest rate is 10% per year. Solve the following cases capitalized cost: Solve for case 2 if the machine on item 1.1 is to be replaced every end of 10 years at 10% worth of money. Salvage cost is zero.For P500, 000, an engineer purchased a piece of equipment. He added another P40,000 to his budget for installation and other costs. The equipment's expected useful life is ten years. The salvage value is x% of the original cost. The book value at the end of five years using the straight line technique will be P300,500. What is the numerical value of x?
- A theft-avoidance locking system has a first cost of $23,500, an AOC of $16,000, and no salvage value after its 3-year life. Assume that you were told the service provided by this asset would be needed for only 5 years. This means that the asset will have to be repurchased and kept for only 2 years. What would its market value, call it M, have to be after 2 years in order to make its annual worth the same as it is for its 3-year life cycle at an interest rate of 10% per year? Determine the market value M using factors. The market value M is $The mining company is considering purchasing a machine which costs $30000 and is expected to last 12 years with a $3000 Salvage value. The annual operating expenses are expected to be $9000 for the first 4 years, but owing to decreased use, the operating costs will decrease by $400 per year for the next 8 years. Alternatively, the company can prirchase a highly automated machine at a cost of $58000. This machine will last only 6 years because of its high technology. and delicate design, and its salvage value will be $15000. Because it it is so automated, its operating cost will be only $4.000 per year. If the company's minimum attractive fate of return is 20% per year, which Machine should be selected on the basis of present worth analysis?An asset was purchased 5 years ago at a price of $52,000. It was expected to be in service for 8 years, at which time its salvage value would be $4000. If the function that the asset was serving is no longer, what price must it be sold to recover the invested capital when i = 12%
- An independent contractor for a transportation company needs to determine whether she should upgrade the vehicle she currently owns or trade her vehicle in to lease a new vehicle. If she keeps her vehicle, she will need to invest in immediate upgrades that cost $4,700 and it will cost $1,450 per year to operate at the end of year that follows. She will keep the vehicle for 6 years; at the end of thi period, the upgraded vehicle will have a salvage value of $4,300. Alternatively, she could trade in her vehicle to lease a new vehicle. Sh estimates that her current vehicle has a trade-in value of $9.300 and that there will be $4,500 due at lease signing. She further estimates that it will cost $3,300 per year to lease and operate the vehicle. The independent contractor's MARR is 12%. Compute the EUAC of both the upgrade and lease alternatives using the insider perspective. Click here to access the TVM Factor Table Calculator. EUAC(keep): EUAC(lease): $ S Carry all interim calculations to…Assume the MARR is 10% per year for this analysis. A presently owned machine that was purchased 8 years ago for $450,000 is under consideration for replacement. It has an annual operating cost of $120,000 per year and a salvage value of $40,000 whenever it is replaced. The challenger has a first cost of $670,000, an expected annual operating cost of $94,000, and a salvage value of $60,000 after its 10-year economic life. The breakeven market value of the presently owned machine required to make the AW values of the two machines the same, if the presently owned machine is kept for 5 more years and then replaced with the challenger that has the same AW, is closest to: (a) $196,340 (b) $255,390 (c) $325,360 (d ) $394,770A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand of the customers. It can be upgraded now for $81,000 or sold to a smaller company Internationally for $42000. The upgraded machine will have an annual operating cost of $87,000 per year and a $32,000 salvage value in 3 years. If upgraded, the presently owned machine will be retalned for only 3 more years, then replaced with a machine to be used in the manufacture of several other product lines. The replacement machine, which will serve the company now and for a maximum of 8 years, costs $217,000. Its salvage value will be $52.000 for years 1 through 5: $20,000 after 6 years; and $10,000 thereafter. It will have an estimated operating cost of $45,000 per year. Perform an economic analysis at 14% per year using a specified 3-year planning horizon. a) Determine if the current machine should be replaced now or 3 years from now. b) Once decided, determine the equlvalent AW for the next three years. a) The…
- Required information For equipment that has a first cost of $17,000, the estimated operating costs and year-end salvage values are as shown. Year Operating Cost, $ Salvage Value, $ 1 -1,000 7,000 2 -1,200 5,000 3 -1,300 4,500 4 -2,000 3,000 5 -3,000 2,000 Write the PMT function to determine AW for year 4, if net operating costs are entered into cells B2 through B6. (Please upload your response/solution using the controls below.)An engineer calculated the AW values shown for retaining a presently owned machine additional years. A challenger has an ESL of 4 years with AW = $-60,000 per year. Assuming all future costs remain the same, when should the company replace the defender? The MARR is 12% per year. Assume used machines like the one presently owned will always be available. Years Retained 12345 a) at year 5 b) at year 4 c) at year 1 d) at year 3 AW of Defender, $ -77,000 -63,000 -58,000 -64,000 -70,000Please answer by hand calculations not excel:A presently owned machine can last 3 more years, if properly maintained at a cost of $15,000 per year. Its AOC is $31,000 per year. After 3 years, it can be sold for an estimated $9000. A replacement costs $80,000 with a $10,000 salvage value after 3 years and an operating cost of $19,000 per year. Different vendors have offered $10,000 and $20,000, respectively, for the current system as trade-in for the replacement machine. At i = 12% per year, perform a replacement study and determine whether the defender should be retained or replaced. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.