(a) Declining balance method, (b) DDB method, (c) sinking fund method g iven interest rate at 12.5 percent
Q: An investor is considering buying a property for shillings 500,000. The cost of land is 20% of the…
A: Here, To Find: Equity IRR =?
Q: An asset with a purchase price of $486,966 falls in the 5-year MACRS asset class. The asset will be…
A: The book value is calculated as the cumulative depreciation over 3 years multiplied by asset cost
Q: A newly-built business property, containing space for a store and two offices, can be purchased for…
A: a. Annual revenue = P458,460Annual cost:Depreciation = (P1,200,000 - P700,000) / (F/A, 20%,10) =…
Q: McClintock Corporation is considering investir $60,000 in a new piece of machinery that will…
A: Present value of the future value is the value without interest that is equivalent today considering…
Q: $775000, and will last for 5 years. The expected scrap value at the end of 5th year is $140000.…
A: Since you have multiple subparts we solved the first 3 for you . if you want all please repost with…
Q: Keating Co. is considering disposing of equipment with a cost of $74,000 and accumulated…
A: Preparation of income statement helps the business entity in determining how much amount of gross…
Q: A company is evaluating a new 4-year project. The equipment necessary for the project will cost…
A: Initial cost of the project = $2,900,000 Salvage value = $ 655,000 Dpreciation method = 5-years…
Q: Jefferson Company is considering investing $33,000 in a nev last five years and to have a salvage…
A: The expense of borrowing money is called interest expenditure. For using the lender's funds, the…
Q: BBL Inc. is considering an equipment for its new factory. It can either purchase the equipment for…
A: In the given question we are provided with the information of BBL Inc. With the given information in…
Q: A company, XYZ, bought a machine for BD 250,000 which has a useful life of 10 years and can be sold…
A: Machine has a fixed useful life after which it has to be dismantled. The value of asset can be…
Q: The NUBD Co. is planning to purchase a new machine for P300,000. The payback period is expected to…
A: Cost of new Machine = P300,000 Depreciation = P50,000 Expected Payback Period = 5 Years
Q: Water Cutter Co. is considering purchasing a system to assist inw ater jet manfacturing. The system…
A: Present worth analysis is an analysis in which we convert all the cash flows to present worth using…
Q: A company purchases an industrial laser for $166,000. The device has a useful life of 4 years and a…
A: After tax cash flow (ATCF) = Taxable income - Tax + Depreciation
Q: Emaar Builders need to acquire the use of a crane for construction business, and are considering…
A: crane cost = 2,500,000 stright line depreciation and zero salvage time period = 5 lease rent =…
Q: A firm can purchase a centrifugal separator (5-year MACRS property) for$17,000. The estimated…
A: Given Data: Investment ($) 17000 Useful life 6 Salvage value($) 3000 Tax rate 23% MARR 12%…
Q: Ramsis is a heavy equipment rental company. It is considering the purchase of Tower crane at a price…
A: Before investing in new assets or projects, profitability of the project is evaluated by using…
Q: Determine the amount of each monthly installment to be paid to the financial agent.
A: A set payment paid by a borrower to a lender on a predetermined date each month is known as an…
Q: Ramsis is a heavy equipment rental company. It is considering the purchase of Tower crane at a price…
A: Discounted payback period Discounted payback period calculates the period to achieve the earnings…
Q: Pamantasan ng Lungsod ng Maynila buys a solar panel unit for P105,000. The shipping and installation…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A granite company is planning to buy a fully automated granite cutting machine. If it is purchased…
A: The time value of money is a concept that is used to measure the value and worth of a sum of money…
Q: NUBD Co. is planning to purchase a new machine which it will depreciate, for book purposes, on a…
A: Accounting rate of return = Average annual profit / Average investment Average annual profit = Net…
Q: A construction company has an option to purchase a certain bulldozer for $61,000 at any time between…
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: A company buys a solar panel unit for P105,000. The shipping and installation fees amount to…
A: There are different methods of depreciation. That method of depreciation which is most suited should…
Q: The initial cost of a paint sand mill, including its installation is P765,952. The mill will last…
A: A sinking fund is a method of charging depreciation where every year a fixed amount of depreciation…
Q: De La Salle University buys a steam generator for P250,000. The shipping and installation fees…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: A machine was purchased with an amount of P375,000.00 and a modification cost of P100,000.00 after…
A: We have in the Question, Purchase Price = P 375,000 now Modification cost = P 100,000 after…
Q: A firm depreciated its assets with regard to an investment to $0.00 book value by the end of the…
A: Deprecation is the accounting method under which cost of assets will be claimed as expenses by…
Q: A house and lot are for sale for $155,000. It is estimated that $45,000 is the land’s value and…
A: Given that, PV of the Land = $ 45,000 PV of the house = $ 1,10,000 Annual rental income (before…
Q: company is considering constructing a plant to manufacture a proposed new pre 0,000.00, the…
A: In this we have to calculate initial investment in projects and than calculate the payback…
Q: A machine was bought P100,000 and the scrap value is P15,000 after 30years. Calculate its book value…
A: If the value of an asset gets reduced due to the normal usage in the the operation of the business,…
Q: The initial cost of a paint sand mill, including its installation is P806,875. The mill will last…
A: A sinking fund is a method of charging depreciation where every year a fixed amount of depreciation…
Q: Ramsis is a heavy equipment rental company. It is considering the purchase of Tower crane at a price…
A: Capital budgeting is the process by which a corporation examines potential large projects or…
Q: 1. Calculate the loan payment amount. 2. Calculate the present worth of the investment. 3. Based…
A: System Cost = $200,000 Expected Life = 7 Years Operating and Maintenance expenses = $20,000 per year…
Q: will the new machine cost
A: Cost = Annual cash from operations/Accounting rate of return
Q: A new equipment is being considered at a local company at a cost of $200,000. The operation and…
A: Computation of EUAC for this equipment is as follows:
Q: Anewly built property, containing space fora store and two offices, can be purchased for P1200,000 A…
A: Rate of return refers to the rate at which the cash inflows are received. This is the rate at which…
Q: Supposed amarriedcouple wishesto acquire aluxurious condominium in Tagaytay.Thiscan be acquired by a…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: amantasan ng Lungsod ng Maynila buys a solar panel unit for P105,000. The shipping and installation…
A: Since this is multi- part question, we are going to solve only first three parts for you. To get the…
Q: A company, XYZ, bought a machine for BD 250,000 which has a useful life of 10 years and can be sold…
A: Sinking fund: A sinking fund is a fund that is set aside for future repayment purposes of debt or…
Q: A small research device can be purchased for $10,000 and depreciated by 5-year MACRS depreciation.…
A: NPV: NPV means net present value it defines a difference of a certain time period between cash…
Q: NUBD Co. is planning to purchase a new machine which it will depreciate, for book purposes, on a…
A: Accounting rate of return measures the amount of profits that can be earned from an investment.
Q: For its proposed expansion, an ice plant company is selecting from two offers of ice cans. The data…
A: Offer A initial cost =730000 Annual cost =65000 Life =12 Offer B initial cost =650000 Annual cost…
Q: A bridge that was constructed at a cost of P75,000,000 is expected to last 30 years, at the end of…
A: Capitalized cost refers to the present worth of cash flows that go on for an infinite period of…
The company buys a solar panel unit for P105,000. The shipping and installation fees amount to P15,000. If the unit is expected to last for 15 years, with a salvage value of P3,000, what is the
Step by step
Solved in 3 steps with 4 images
- A company buys a solar panel unit for P105,000. The shipping and installation fees amount to P15,000. If the unit is expected to last for 15 years, with a salvage value of P3,000, what is the depreciation charge during the 12 th year, and the book value at the end of 14 years by the (c) sinking fund method given interest rate at 12.5 percent, and (d) Sum-of-the-Years Digit (SYD) Method.Pamantasan ng Lungsod ng Maynila buys a solar panel unit for P105,000. The shipping and installation fees amount to P15,000. If the unit is expected to last for 15 years, with a salvage value of P3,000, what is the depreciation charge during the 12th year, and the book value at the end of 14 years by the (a) Declining balance method, (b) DDB method, (c) sinking fund method given interest rate at 12.5 percent, and (d) Sum-of-the-Years Digit(SYD) Method.An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its book value at year 3 with 3.24% interest rate. Use Sinking Fund Method
- A company decides to borrow $100 000 at j1 = 12% in order to finance a new equipment purchase. One of the conditions of the loan is that the company must make annual payments into a sinking fund (the sinking fund will be used to pay off the loan at the end of 20 years). The sinking-fund investment will earn j1 = 6%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a) What is the amount of each sinking-fund payment if they are all to be equal? Amount of each sinking-fund 2$ b) What is the total annual cost of the loan? Total annual cost c) What overall annual effective compound interest rate is the company paying to borrow the $100 000 when account is taken of the sinking-fund requirement? Compound interest rate %A company estimates that it will have to replace a piece of equipment at a cost of $800,000 in 5 years. The company has an account that pays 5.6% interest compounded monthly. The company has two options: a lump sum deposit or a sinking fund c) Instead, if a sinking fund is established, how much should each payment be? d) How much will be earned in interest?2. An electric generator is purchased for P80 000.00, it is expected to be used for five years and then sold for P15 000.00. Annual operating and maintenance costs are estimated at P20 000.00. Using a discount rate of 10%, determine the present worth of the investment. (Ans. — P146 502.00)
- Pamantasan ng Lungsod ng Maynila buys a solar panel unit for P105,000. The shipping and installation fees amount to P15,000. If the unit is expected to last for 15 years, with a salvage value of P3,000, what is the depreciation charge during the 12 th year, and the book value at the end of 14 years by the (a) Declining balance method, (b) DDB method, (c) sinking fund method g iven interest rate at 12.5 percent, and (d) Sum-of-the-Years Digit (SYD) Method.Payback Company is considering the purchase of a copier machine for P42,825. The copier machine will be expected to be economically productive for 4 years. The salvage value at the end of 4 years is negligible. The machine is expected to provide a 15% internal rate of return. The company is subject to 40% income tax rate. The present value of an ordinary annuity of 1 for 4 periods is 2.85498. In order to realize the IRR of 15%, how much is the estimated before-tax cash inflow to be provided by the machine? A. P17,860 C. P25,000 B. P15,000 D. P35,700 Please show solutionA commercial building can be acquired at a downpayment of P 500,000 and a yearly payment of P 100,000 at the end of each year for a period of 10 years starting at the end of five years from the date of purchase. If money is worth 12% compounded yearly, what was the cash price of the commercial bldg?
- A certain dam costs P400,000 and will serve the purpose for 20 years. At the end of that time it must be enlarged at a cost of P200,00O. If the dam had been built larger than originally, the cost would have been P500,000. Bonds pay interest at the rate of 5% per annum and the interest paid annually. Compare the two alternatives and calculate the saving or loss. O The first alternative is better O The second alternative is betterATV is costs P90,000. Its estimated scrap value is P10,000 after 8 years. Solve for the constant depreciation per year(d) with 11% interest rate.Use Sinking Fund MethodA machine was bought P100,000 and the scrap value is P15,000 after 30years. Calculate its book value at year 14 with 5% interest rate.Use Sinking Fund Method. Straight Line Method(SLM)