A machine costs $25,000 with an estimated salvage value of $2,000. It has an estimated useful life of 5 years. If the machine was purchased on January 10, what would be the book value of the machine at the end of year 1, using the straight-line method? Options: a. $20,000 b. $18,600 c. $23,000 d. $21,400

What is the present worth equivalent of the machine considered to be the most preferred choice? (i=10%) show detailed solution

A machine, purchased for$50,000, has a depreciable life of five years. It will havean expected salvage value of $4,500 at the end of the depreciable life. Find theyearly depreciation, Book value every year using the following methods: a. MATHESON EQUATION b. SINKING FUND METHOD ( i = 12%)

A certain power plant is considering two alternatives with regards to a hydraulic equipment which it needs.  The following alternatives were considered.                                            Equipment A                 Equipment B First Cost:                           P 120,000                       P 136,000 Salvage Value:                   P 15,000                                 0 Life:                                      6 years                            8 years Annual Maintenance:           P 9,000                           P 7,000 Compute the difference between the equivalent present worth of the two alternatives if interest rate is 7% compounded annually.   Select one: a. P 26,410 b. P 30,108 c. P 28,312 d. P 24,895

Reference: Case Study S Dunn Manufacturing is considering the following two alternatives. The cost information for the two proposals for replacing an equipment are provided are in table below. Initial cost Benefits/year Machine X $120,000 $20,000 for the first 10 years and $9,000 for the next 10 years Life Salvage value $40,000 MARR 5.2. The NPW of machine X is A) $35,158 B) $48,192 C) $50,752 Machine Y $96,000 $12,000 per year for 20 years. 20 years 8% $20,000

The cost of an equipment is P650,000 and the cost of installation is P45,000. If the salvage value is 12% of the cost of equipment at the end of 10 years, determine the book value at the end of the fourth year. a. Use straight-line method (SLM) b. Use sinking fund method (SFM) at 3.5% interest. Please answer completely will give rating surely Complete Answer needed

21. A machine costs P60,000 and the salvage value is P10,000 after 10 years. Find the book value after 7 years by Straight Line Method. Answer with text and/or attachments:

What is the present worth equivalent of the machine considered to be the least preferred choice? (i=10%) show detailed solution

A company is considering two alternatives with regards to equipment which it needs. The alternatives are as follows: Alternative A: Purchase Cost of Equipment 703,668700,000 Salvage Value 100,454100,000 Daily operating cost 501500 Economic life, years 10 Alternative B: Rental at 1,5751,500 per day. At 18% interest, how many days per year must the equipment be in use if Alternative A is to be chosen.

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