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Suppose that you are asked to derive the
3% |
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3.75% |
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4% |
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4.75% |
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- If B = $400,000, n = 6 years, and S is estimated at 15% of B for a new pavement recycling machine, use the SYD method to determine (a) the book value after 3 years, and (b) the rate of depreciation and the depreciation amount in year 4.You have bought an asset which costs $15,000. You depreciate it using the Straight Line Depreciation method. If salvage value for the asset is $3,000, and the asset’s useful life is 3 years, what is the annual depreciation?What is the depreciation each year for a trailer that cost $10,000 new, has a life of 5 years, and a salvage value of $2,00? Use straight line depreciation. What is ?the book value after 2 years
- Consider the following data on an asset: • Cost of the asset = $38,000 • Useful life = 6 years • Salvage value = $5,000 Compute the annual depreciation allowances and the resulting book values using a 150% declining balance method. Make sure that the last year's book value equals to the salvage value.The capital cost of a property is $5900000. A CCA rate of 20% is applied. The tax rate is 30%. Take five years of depreciation. If the property is sold after five years for $1990000, what is the Disposal Tax Effect?Fill in the missing numbers and then ation tax shield? 5. Calculating Depreciation A piece of newly purchased industrial equipment costs $745,000 and is classified as seven-year property under MACRS. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. LO 2 6. Calculating Salyage Value Consider an asset that costs $635,000 and is
- A real-estate developer seeks to determine the most economical height for a new office building, which will be sold after five years. The developer uses an interest rate of i for its evaluation. The relevant net revenues and salvage values on after-tax basis are given below: 2 floors 3 floors 4 floors 5 floors Building Cost $500,000 $750,000 $1,250,000 $2,000,000 Annual Lease Revenue $199,100 $169,200 $149,200 $378,150 Resale Value $600,000 $900,000 $2,000,000 $3,000,000 (a) The developer is uncertain about the exact interest rate i, but is certain that it is in the range from 10% to 25%. For each value of i ∈ {10%, 15%, 20%, 25%}, determine which building option is the most economical. (b) Suppose that the developer’s interest rate turns out to be 15%. If the the resale costs are 30% overestimated for each height plan (i.e., the resale value turns out to be 70% of $600,000 for the 2 floors, 70% of $900,000, and so on), how does that scenario affect the PW values for the floor options?A small buisness purchases the laptop computer shown. It will be depreciated over a 4 year period, when its salvage value will be 300. Find a depreciation equation in terms of x years of use.1-Suppose you own restaurant. You buy a new pizza oven for $110,000. The oven can be sold for $30,000 after seven years. What is the third year's depreciation charge that you can deduct from your income using: 'Straight-line depreciation? DDB depreciation? MACRS depreciation assuming 5-year property class (use the MACRS table available on blackboard)
- 1. A certain building has a salvage value of P 1 million after 50 years. Annual depreciation is Php 2 M. Using the Straight Line Method, how many years after should you sell the building for Php 30 M?A man planned of building a house. The cost of construction is P 500,000, while annual maintenance cost is estimated at P 10,000. If the interest rate is 6%, what is the capitalized cost of the house?I have the answerr below but I need to know HOW to get that answer. Thank you - I think the chart will attach Find the depreciation for the indicated year using MACRS cost-recovery rates for the properties placed in service at midyear. Round dollar amounts to the nearest cent. Property Class: 5-year Depreciation year: 2 Cost of property: $16,800 ($5,376 is the answer but how do I get it?)