An equipment has a first cost of P 7,000, has a life of 8 years and a salvage value of “ x “. Compute the value of “ x “ if the book value of the equipment at the end of 4th year is P 2,291.11. Use SYD Method
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Problem 5: An equipment has a first cost of P 7,000, has a life of 8 years and a salvage value of “ x “. Compute the value of “ x “ if the book value of the equipment at the end of 4th year is P 2,291.11. Use SYD Method.
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- Economics Last year, a decision was made to keep the same equipment in lieu of buying new equipment. The old equipment's trade-in value last year was $4000 and its value this year is $2000. The operating cost was $700 last year. If bought last year, the new equipment would have cost $13K, the salvage value after 8 years would be $2000, and it would have an annual operating cost of $4000. If bought last year, what would have been the EUAC of the new equipment (in dollars) at 16% interest rate per year? (provide your answer in the box as a negative value if you arrive at costs) What would have been the correct decision? (provide your answer and justification in your pdf file submission)Show complete solutiion. Do not use excel. Manual Method. Steel drums manufacturer incurs a yearly operating cost of P 200,000. Each drum manufactured cost P 160 and sells for P 300. A machine use for the production has a first cost of P 20,000 and a salvage value of P 2,000 after producing 1,000 units. What is the break even number of units per year?A manufacturer is considering replacing a production machine tool. The new machine, costing $3700, would have a life of 4 years and no salvage value, but would save the firm $500 per year in direct labor costs and $200 per year indirect labor costs. The existing machine tool was purchased 4 years ago at a cost of $4000. It will last 4 more years and will have no salvage value at the end of that time. It could be sold now for $1000 cash.Assume that money is worth 8% and that the difference in taxes, insurance, and so forth, for the two alternatives is negligible. Use an annual cash flow analysis to determine whether the new machine should be purchased.
- Rebecca is moving away from New York City for her new job, so she must buy a car rather than rely on public transit. The new car she is considering will cost $ 18,000 to buy, $ 1,500 per year to insure, and $ 500 per year for maintenance after the 3-year warranty expires. She would keep the car for 7 years when it will have a salvage value of $ 7,000. She has found a 2-year-old car that is the same model for $ 13,000. The 3-year warranty is transferrable, so the annual maintenance cost of $500 starts in year 2. Because the car is less valuable, insurance is $300 per year less than for the new car. After 5 years, the vehicle will be 7 years old and will have the same salvage value of $ 7,000. Rebecca is ignoring costs for fuel, oil, tires and registration, because the two vehicles will have the same costs. If her interest rate is 9%, how much cheaper is the used car (difference of EAC of two vehicles). Calculate the present worth of a machine which costs $105000 initially and has a 10 year life with a $20000 salvage value. The operating cost of the machine is expected to be $6000 in year 1(end_of_year) and $6600 in year 2, and amounts increasing by the 10% through its 10-year life. Use an interest rate of 12% per year. Please don't used excel I again says don't used excelMang Danny bought a piece of equipment for P1,000,000. He spent an additional amount of P300,000 for installation and other expenses. The salvage value is 15% of the first cost. If the book value at the end of 7 years will be P333,125 using SLM, compute the useful life of the equipment in years. Add your answer
- A mass diagram from sta. 0+00 to sta. 50+00 is plotted as below. The free-haul distance is 1000' The earth excavation cost is $0.12 per yd and the overhaul cost is $0.02 per yd per station. Calculate the Economical Haul Distance. (Round to the nearest foot and fill in the blank with a number only.) 1000 500 -500 -1000 0+00 10+00 20+00 30+00 40+00 50+00 26+00 2+00 4+00 14+00 17+00 33+00 38+00 41+00 Stations 8+00 28+00 Cubic Yard6. Electrical switch manufacturing companies must choose one of three different assembly methods. Method A will have an initial cost of $40,000, annual operating costs of $9,000, and a 2 year lifetime. Method B will cost $80,000 to purchase and will have an annual operating cost of $6,000 over its 4 year service life. Method C will cost $130,000 initially with an annual operating cost of $4,000 over its 8 year life. Methods A and B will have no salvage value, but method C will have a salvage value for some equipment that is approximately $12,000. Which method to choose? Use present value analysis at an interest rate of 10% per annum if the alternatives are mutually independent A. A and B B. B and C C. C D. There is no economically feasible solution Please solve based the option max 15 minutes ASAPA CERTAIN MACHINERY COST P50,000.00 AND WILL LAST FOR 12 YEARS WITH SALVAGE VALUE OF P5000.00. THE OWNER WANTS TO SELL IT AFTER 5 YEARS OF USE. FIND THE SELLING PRICE OF THE MACHINE SO THAT HE WILL NOT LOSE OR GAIN FINANCIALLY IN THE TRANSACTION BY USING SINKING FUND METHOD AT 5% COST OF MONEY.
- Correct only pls. Only the highlighted parts. Npv if pretax cost savings are $100000 per year is -121277. 58. Now how to find the last part.A company has a production capacity of 500 units per month and its fixed costs are P 250,000 a month. The variable costs per unit are P 1,150 and each unit can be sold for P 2,000. Economy measures are instituted to reduce the fixed costs by 10% and the variable cost be 20%. Determine the old and new break-even point, old and new monthly profit at 100% capacity.A specialty concrete mixer used in construction was purchased for $300,000 7 years ago. Its annual O&M costs are $105,000. At the end of the 8-year planning horizon, the mixer will have a salvage value of $5,000. If the mixer is replaced, a new mixer will require an initial investment of $375,000 and at the end of the 8-year planning horizon, the new mixer will have a salvage value of $45,000. Its annual O&M cost will be only $40,000 due to newer technology. Use an EUAC measure and a MARR of 15% to see if the concrete mixer should be replaced if the old mixer is sold for its market value of $65,000. Solve, a. Use the cash flow approach (insider’s viewpoint approach). b. Use the opportunity cost approach (outsider’s view point approach).