4) In order to make a replacement decision, a firm calculated the equivalent annual cost of owning an asset as follows: Replacement Salvage Period EAC Capital Annual Repair EAC Repair Costs Value Costs Costs 1 $1420 $1.287 2 $1,102 $1,082 $400 $189 3 $910 $976 S600 $298 S795 $812 S800 $437 O a. in 4 years Ob in 3 years Oc in 1 year Od in 2 years

Consider the revenues and costs in 2019 for Spruce Decor Inc, an Alberta-based furniture company entirely owned by Mr Harold Buford $645,000 a. What would accountants determine Spruce Decor's profits to be in 20197 Spruce Decor's profits in 2019 equal $471000 Furniture Sales Catalogue Sales Labour Costs Materials Costs Advertising Costs Debt-Service Costs $13,500 $350,000 $148,000 $28,000 $30,000

Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2. M&O cost Retention Yr. Market Value per year O (First Cost) 55,000 35,000 45.000 20,000 47,500 3 15,000 50,000 2,000 53,500 O 63,256 O 69.289 O 68,476 O 67,854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. O 65,765 O 64,332 O 67,428 O 66.256 Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? O 1 O 2 O 3 O 4

Question 5 Cost data of a machine is shown in the following table with an annual rate of 12%. Calculate annual worth at end of year 2 M&O cost Retention Yr. Market Value per year O First Cost) 55,000 1 35,000 45.000 2 20,000 47.500 3 15,000 50.000 4 2.000 53.500 O 6a256 O 69209 O R476 O 67.854 Question 6 Use same cost data from last question and 12% annual rate of return. Calculate annual worth at end of Year 3. O 66.765 O 64332 O 67.428 O 66256 D Question 7 Use the same cost data of the machine from the above 2 questions and 12% interest rate per year. What is the ESL of this machine? 01 04