A certain machine costs P40,000 and has a life of 4 years and a salvage value of P5,000. The production output of this machine in units per year is as follows: 14 year=1,800 units, 2nd year=2,200 units, 3rd year= 3000 units and 4th year=4000 units. If the units produced are of uniform quality, what is the depreciation on the 4th year

Henerhiya Co. is planning to buy a machine costing P84,000 to be depreciated on the straight-line method basis over 10 degrees years life. The related cash flow from operations, net of income taxes, is expected to be P10,000 a year for each of the first 6 years and P12,000 for the next 4 years. It was also estimated that the salvage value of the project at the end of year 1 to be P60,000 and decreases by P5,000 each year thereafter, provided further that at the end of 10 years, the machine has no salvage value. Compute the payback bailout period in years.

An equipment costing P250, 000 has anestimated life of 15 years with a book value ofP30, 000 at the end of the period. Compute thedepreciation charge and its book value after 10 years using the sum of year’s digit method.   Please show your written solution.

Ten years ago, a contractor was able to purchase a crane whose capacity is 2000 tons costing P125 per ton. The life was estimated to be 15 years with a salvage value of 10% of the cost. A market has been found for the old crane for P80,000. If the depreciation has been figured on a straight line basis what is the difference between the depreciation book value of the old crane and its sale value. Final answer should be P20,000

An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the end of the period. Compute the depreciation charge and its book value after 10 years using straight-line method.

An equipment in a factory has an initial cost of Php200,000. Its salvage value after ten years is Php20,000. As a percentage of the initial cost, what is the straight-line depreciation rate of the equipment?

A proposal to buy a new machine to manufacture a new product submitted by the Production Department follows: The new machine cost P1,800,000 with an estimated life of five years and with a salvage value of P500,000 will be depreciated using the Sum of Year's Digit method (SYD). Freight and installation costs are estimated to be P350,000. This machine can be sold for P400,000 after its estimated life. With this machine, P1,250,000 sales will be generated and P550,000 cash expenses will be incurred every year. The expected rate of return of this project is 11% and corporate tax is 25%.   Compute the following: A. Net Cash Outlay (Net Investment Cost) B. Net Cash Inflows (Cash Returns) With solution

Mahima Enterprises is considering replacing an old machine by a new machine. The old machine bought a few years ago has a book value of 90,000 and it can be sold for 790,000. It has a remaining life of five years after which its net salvage value is expected to be 710,000. It is being depreciated annually at the rate of 20 percent as per the WDV method. The new machine costs 400,000. It is expected to fetch a net salvage value of 25,000 after 5 years. It will be depreciated annually at the rate of 25 percent as per the WDV method. Investment in working capital will not change with the new machine. The tax rate for the firm is 35 percent. Estimate the cash flow associated with the replacement proposal, assuming that other costs remain unchanged.

A new absorption chiller system costs $360,000 and will save $52,500 in each of the next 12 years. The asset is classified as a seven-year MACRS property for depreciation purpose. The expected salvage value is $20,000. The firm pays taxes at a combined rate of 40% and has an MARR of 12%. What is the net present worth of the system?(a) $46,725(b) $63,739(c) $62,112(d) $53,317

A new machine costs $100,000 and is expected to last 10 years. At the end of 10 years, the salvage value of the machine is $50,000. What is the depreciation of the machine in the first year and the fifth year? (Declining Balance)