An item costs $12000. The business will need to replace this item every S years at the same cost. If money is worth 7.75% compounded annually, state the capitalized cost of the item Use standard rules of rounding.
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- A company is considering purchase of a machinery costing OMR 45,000, It has a life of 3 years and its expected profit after tax are OMR 15,000, OMR 20,000 and 30,000 respectively. Find out the pavback period of the Machinery.An owner can lease her building for $150,000 per year for three years. The explicit cost of maintaining the building is $50,000, and the implicit cost is $65,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 6 percent, determine the present value of the stream of: Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places. a. Accounting profits. $ b. Economic profits. $An owner can lease her building for $160,000 per year for three years. The explicit cost of maintaining the building is $55,000, and the implicit cost is $70,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of: Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places. a. Accounting profits. $ b. Economic profits. $ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- A car can be purchased for P650,000 when new. There follows a schedule ofannual operating expenses for each year and trade in values at the end of each year. Assume that these amounts would be repeated for future replacements, and that the car will not be kept more than 3 years. if interest on invested capital is 18% before taxes. Determine at which year's end the car should be replaced so that cost will be minimized.A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two, and amounts increasing by $500 per year through year 15. At an interest rate of 0.08 per year, the present worth of the maintenance cost is nearest to Note: The given interest is already in decimal form. Do not round in between solution. Final answer round to the nearest whole numberA general purpose truck is purchased for business. Its cost Basis is 70,000. It will last 10 years and be sold for 10,000. i = 6% for the loan with monthly payments. What is the depreciation allowance for the third year using MACRS? O 19466 O 894 21774 O 26971 O 13440
- A company has just purchased a machine with a cost of $79,994, and signed a note to pay the manufacturer equal semi-annual amounts of $9,378. If the current rate of interest is 6%, how many equal payments will be made? Select one: O a. 5 O b. 6 O C. 8 O d. 10 O e. 124. An instrument requires recalibration once every five years at a cost of $2500 each time. Determine the capitalized cost of this expense, assuming i = 5%.A car can be purchased for ₱600,000 when new. These follow a schedule of annualoperating expenses for each year and trade-in values t the end of each year. Assume thatthese amounts would be repeated for future replacements and that the car will nt be keptmore than 3 years. If interest on invested capital is 15% before taxes determine at whichyear’s end the car should be replaced so that cost will be minimized.Year 1 Year 2 Year 3Operating expense for year ₱54,000 ₱38,000 ₱41,000Trade-in value at end of year 408,000 336,000 240,000
- An apartment building is generating income of $250000. Maintenance expenses total 40% of this income and vacancy loss is 12% of income. The market supports a capitalization rate of 12.75%. Using the income capitalization approach, what is the years to purchase?Let the initial cost of a certain device be $5000 and the operating cost in each year be $1000 (assume the payment is made at the end of the year). The salvage value at the end of 5 years is zero. For i 10% annualize the costs over the 5- year period.The expected annual maintenance expense for anew piece of equipment is $10,000. This is AlternativeA.Alternatively, it is possible to perform the maintenanceevery fifth year at a cost of $50,000 (Alternative B). Ineither case, maintenance will be performed in the fifthyear so that the equipment can be sold for $100,000 atthat time. If the MARR is 15% per year (before incometaxes), which alternative should be recommended ineach of these situations? a. Before income taxes are considered.b. After income taxes are considered when t = 40%.c. Is there a different selection before and after incometaxes are considered?