A local private hospital has just purchased a new computerized patient information system with an installed cost of $220,000. The information system is treated as five-year MACRS property. The system would have a salvage value of about $20,000 at the end of five years. What are the yearly depreciation allowances'?
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A local private hospital has just purchased a new computerized patient information system with an installed cost of $220,000. The information system is treated as five-year MACRS property. The system would have a salvage value of about $20,000 at the end of five years. What are the yearly depreciation allowances'?
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- The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $161,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. What is the BV at the end of the second year? Click the icon to view the GDS Recovery Rates (r) for the 3-year property class. Choose the correct answer below. O A. The BV at the end of the second year is $51,520. O B. The BV at the end of the second year is $107,339. OC. The BV at the end of the second year is $35,774. O D. The BV at the end of the second year is $71,565.The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $159,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. What is the BV at the end of the second year? Click the icon to view the GDS Recovery Rates (r) for the 3-year property class. Choose the correct answer below. More Info O A. The BV at the end of the second year is $50,880. O B. The BV at the end of the second year is $70,676. GDS Recovery Rates (r) O C. The BV at the end of the second year is $35,330. 3-year Property Class 0.3333 Year O D. The BV at the end of the second year is $106,005. 1 2 0.4445 3 0.1481 0.0741The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $150,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. Use this information to solve, If the autoclave is sold during the third year of ownership, the allowable depreciation charge for the third year is (a) $25,000 (b) $33,338 (c) $22,215(d) $11,108.
- The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $150,000. This asset will be depreciated using an MACRS (GDS) recovery period of three years. Use this information to solve, The BV at the end of the second year is (a) $27,771 (b) $41,667 (c) $116,675 (d) $33,325The Transportation Service Directorate of a Municipality wants to purchase a newsoftware system to charge and track toll fees. The director wants to know the total capitalized cost ofthe software system. The system has an initial installment cost of 150 000 pbr and an additional cost of50 000 pbr after 10 years. Annual software maintenance cost is 8000 pbr and starts at year five. Inaddition, there is expected to be a recurring major upgrade cost of 15000 pbr every 13 years. Assumethat i=5% per year. If the new system will be used for the indefinite future, draw the cash flowdiagram and find the capitalized cost of the investment.A hospital wants to buy a new MRI machine for $45,000. The annual revenue from the machine is estimated at $18,000 per year while maintenance costs per year are calculated to be $ 6,000. The salvage value at the end of the machine’s six-year operational life is $12,000. If the hospital’s MARR is 10% per year, should this investment be undertaken? (Use PW-Method).
- Garbage collection in the city are collected by garbage trucks which are operated by private contractor to ensure effective service to the public. One garbage truck will cost P3M with an annual maintenance cost of P50,000. The life of the truck is 5 years with a salvage value of P180,000. The contractor can hire a similar truck for P3400 a day. If money is worth 10% annually, how many days per year must the truck be used to warrant the purchase of the machine assuming it is used everyday for the whole year? Select the correct response: 158 221 239 200A water pump to be used by the city’s maintenance department costs $10 000 new. A running-in period, costing $1000 immediately, is required for a new pump. Operating and maintenance costs average $500 the first year, increasing by $300 per year thereafter. The salvage value of the pump at any time can be estimated by the declining balance rate of 20 percent. Interest is at 10 percent. Using a spreadsheet, calculate the EAC for replacing the pump after one year, two years, etc. How often should the pump be replaced?A project has to sell a machine that is obsolete. The market department finds a buyer who is willing to pay $100, 000 for the machine. The machine was purchased 4 years ago for $1.1 million. The accounting department notes that the depreciation method for this machine is straight line, and the machine will be depreciated to zero over a five year time period after purchase. What is the machine's after - tax salvage value? Tax rate is 21%. Question 1 options: $1, 635.24 $2, 314.05 $142,000.00 - $2,784.62$289.26
- The owner of Atlantic City Confectionary is considering the purchase of a new semiautomatic candy machine. The machine will cost $25,000 and last 10 years. The machine is expected to have no salvage value at the end of its useful life. The owner projects that the new candy machine will generate $4,000 in after-tax savings each year during its life (including the depreciation tax shield). Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: Compute the profitability index on the proposed candy machine, assuming an after-tax hurdle rate of: (a) 8 percent, (b) 10 percent, and (c) 12 percent. (Round your final answers to 2 decimal places.)City Hospital, a nonprofit organization, estimatesthat it can save $28,000 a year in cash operating costs for the next 10 years if it buys a special-purpose eyetestingmachine at a cost of $110,000. No terminal disposal value is expected. City Hospital’s required rate ofreturn is 14%. Assume all cash flows occur at year-end except for initial investment amounts. City Hospitaluses straight-line depreciation. Q.What other factors should City Hospital consider in deciding whether to purchase the special-purposeeye-testing machine?Blossom, Inc. is considering the purchase of a warehouse directly across the street from its manufacturing plant. Blossom currently warehouses its inventory in a public warehouse across town. Rent on the warehouse and delivering and picking up inventory cost Blossom $48960 per year. The building will cost Blossom $459000. Blossom will depreciate the building for 20 years. At the end of 20 years, the building will have a $127500 salvage value. Blossom’s required rate of return is 11%. suggest whether he should buy warehouse