During the construction of a highway bypass, earth moving equipment costing P400,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year 25%; and in the final year, the remaining 5%. Determine the service-output depreciation schedule.
Q: A new operations system requires an initial investment of $100,000 and will generate $70,000 in…
A:
Q: The payback period for this proposed investment is:
A: Payback period is the number of years it takes for company to recover the initial investment. It…
Q: The project manager of a steel manufacturing factory in Hamilton puts forth a proposal to the senior…
A: There is no tax rate is given. Hence, the increase in profits should be considered as net cash…
Q: The original cost for a distillation tower is $24,000 and the useful life of the tower is estimated…
A: Original cost for distillation tower = $24000 Scrap value = $4000 Estimated life = 8 years Annual…
Q: 5 During the construction of a highway bypass, earth- moving equipment costing $40,000 was purchased…
A: A fixed asset is a non-current asset acquired by a business entity to be used for a longer period of…
Q: Larson Manufacturing is considering purchasing a new injection-molding machine for $250,000to expand…
A: Given,Cost of machine $ 250,000Installation $20,000Revenue $90,000Salvage value $75,000Term 5…
Q: Coyote Co. is building a waste landfill in the desert between Arizona and California. Coyote…
A: The question is based on the concept of Business accounting.
Q: A retrofitted space-heating system is being considered for a small office building. The system can…
A: MARR = 15% Year Cash Flow 0 -110,000.00 1 30,070.00 2 30,070.00 3 30,070.00 4…
Q: A city is evaluating the installation of a garbage incinerator on the outskirts of town. The cost of…
A: Note: $25,000 environmental study cost, which is irrelevant for decision making. So, this cost…
Q: A corlcrete and rock crusher for demolition work has been purchased for $60,000, and it has an…
A: Depreciation is the allocation of cost of asset over the useful life of asset. There are many…
Q: A construction company operates a bulldozer that initially costs $28,000. The first year maintenance…
A: Salvage value is the only cash inflow present in this question. So, salvage value shall be reduced…
Q: The Manila Gas Corporation is considering the purchase of a power trench digger for laying main…
A: We will be using the break-even analysis as it will help us determine whether the project has the…
Q: An Engineer makes the following cost estimates for each: A: Concrete Bleachers: First cost,…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: A Construction Company has just purchased a fleet of five truck to be used for delivery in a…
A: The present value is the present worth of the amount that will be paid or received at future.
Q: Determine the cost of the copper mine. 2. Prepare the journal entries to record the acquisition…
A: Computation of Cost of Copper Mine Particular Amount Cash Paid for Mining site $1,000,000…
Q: The manager of a carpet manufacturing plant became concerned about theoperation of a critical pump…
A: Net present value is used to calculate the existing value of future cash flows for decision making.
Q: The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating…
A: Computation:
Q: A retrofitted space-heating system is being considered for a small office building. The system can…
A: MARR = 15% Cash Flows: Year Cash Flow 0 -110,000.00 1 30,070.00 2 30,070.00 3 30,070.00…
Q: A 2500-acre tract of timber is purchased by the Houser Paper Company for $1,200,000. The…
A: Depletion allowance- The depletion allowance is alike to the depreciation allowance afforded other…
Q: The original cost for a distillation tower is $ 24,000 and the lifetime of the tower is estimated at…
A: CALCULATION: With formula:
Q: A 50-kilowatt gas turbine has an investment cost of $40,000. It costs another $14,000 for shipping,…
A: Formula used for (A/P,i%,n) is: Formula used for (A/F,i%,n) is:
Q: Rollerblade, a maker of skating gear, is evaluating two alternative presses. Press A costs $88,000,…
A: The press to be chosen is totally dependent on the positive and higher NPV comparatively. Net…
Q: An injection molding system has a first cost of $175,000 and an annual operating cost of $95,000 in…
A: ESL means maximum life of the machinery up to which machine can provides positive cashflows. ESL is…
Q: A concrete and rock crusher for demolition work has been purchased for $60,000, and it has an…
A:
Q: Center is planning to purchase MRI and CT for its new imaging center. The MRI and CT is expected to…
A: The question is based on the concept of Project Valuation.
Q: Compute the NPV (at 10 percent cost of capital) and IRR to determine the financial feasibility of…
A: Internal Rate of Return: It is the rate at which the net present value of an investment becomes…
Q: The Highway Department expects the cost of maintenance for a piece of heavy construction equipment…
A: The value of money varies with time, therefore the time value of money considers the worth of the…
Q: Sergei Company purchases land for $4,000,000 from which it expects to extract 2,000,000 tons of…
A: Introduction: Depletion rate per ton = ( Asset value - salvage value ) / Estimated Tons
Q: Budget Hardware Consultants purchased a building for $458,000and depreciated it on a straight-line…
A: Straight line method of depreciation is a method where depreciation per year will remain same .…
Q: Machine “A” has an initial cost of $ 50,000 with an estimated period of 12 years and a salvage value…
A: Present value of cash outflows = Cash outflows/(1+r)n r is interest rate and n is time period of…
Q: Batangas State University is purchasing a new queuing system for its service improvement in…
A: Depreciation is a reduction in value of asset due to wear and tear, technological advancement and…
Q: Norton Auto Parts, Inc., is considering two different forklift trucks for use in its assembly…
A: Truck A: Price $15000 Salvage value $5000 Number of years 3 Annual cost $3000 Truck B: Price $20000…
Q: Six sites have been identified for a parking lot in downtown Blacksburg. Because the sites are plots…
A: IRR: It is the discount rate that makes the NPV equals to zero. Hence, the initial cash outflow is…
Q: On January 3, 2018, Rapid Delivery Service purchased a truck at a cost of $100,000. Before placing…
A: 1.
Q: The Johnson Chemical Company has justreceived a special subcontracting job from one of itsclients.…
A: NPV computes the existing value of future benefits by discounting future worth with a stated…
Q: Canvas Reproductions, Inc., has spent $4,500 dollars researching a new project. The project requires…
A: Amount spent for research on new product = $4500 Cost of new machinery = $20,000 Installation cost =…
Q: Alfred Home Construction is considering the purchase of five dumpsters and the transport truck to…
A: Annual Worth(AW) is worth of proposed investment over its useful life. It is computed by equalizing…
Q: Jonhson Products is considering purchasing a new milling machine that costs $100,000. The machine’s…
A: New machinery cost = $100,000 Installation and shipping costs = $2,500 Initial working capital…
Q: Abbott placed into service a flexible manufacturing cell costing $850,000 early this year for…
A: Taxable income is the amount on which the tax is to be paid. It is the amount after considering all…
Q: cooling water pumping station at a manufacturing plant in Iligan City costs P30,000,000 to…
A: Straight line method charge depreciation equally over the useful life of the assets. Declining…
Q: In 2021, the Marion Company purchased land containing a mineral mine for $1,800,00O. Additional…
A: Depreciation of asset=Cost of asset-Residual valueTotal estimated tons×Tons extracted Book value of…
Q: Machine “A” has a starting cost of $ 50,000 with an estimated period of 12 years and a salvage value…
A:
Q: Machine “A” has an initial cost of $ 50,000 with an estimated period of 12 years and a salvage value…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: The following information is for a proposed project that will provide the capability to produce a…
A: Capital budgeting techniques are commonly used at a large scale by companies to identify the…
Q: An area on the Colorado River is subject to periodic flood damage that occurs, on the average, every…
A: PV is the current worth of cash flows that are expected to occur in the future.
Q: A concrete and rock crusher for demolition work has been purchased for $65,000, and it has an…
A: Depreciation: Depreciation is an accounting method which is used for allocating the cost of a…
During the construction of a highway bypass, earth moving equipment costing P400,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year 25%; and in the final year, the remaining 5%. Determine the service-output depreciation schedule.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 50,000 m2 and the installed liner cost was $8 per m2. In order to recover the investment, the owner charges to unload at the rates of $10 per pick-up, $25 per dumptruck, and $70 per compactor-truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pick-up loads, 650 dumptruck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment?5 During the construction of a highway bypass, earth- moving equipment costing $40,000 was purchased for use in transporting fill from the borrow pit, At the end of the 4-year project, the equipment will be sold for $20,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year, 25%; and in the final year, the remaining 5%. Determine the units-of-production depreciation schedule for the equipment.During the construction of a highway bypass, earth moving equipment costing P400,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year 25%; and in the final year, the remaining 5%. Determine a) the units-of-production depreciation schedule b) the declining balance depreciation schedule.
- During the construction of a highway bypass, earth moving equipment costing P400,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4-year project, the equipment will be sold for P200,000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 40% of the total fill is required; in the second year, 30%; in the third year 25%; and in the final year, the remaining 5%. Determine the declining balance depreciation schedule.The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 47,000 m² and the installed liner cost was $8 per m2. In order to recover the investment, the owner charges to unload at the rates of $17 per pickup, $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pickup loads, 650 dump-truck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment? The rate of return that will be made by the landfill owner is % per year.Peachtree Construction Company, a highway contractor, is considering the purchase of a new trench excavator that costs $300,000 and can dig a 3-foot-wide trench at the rate of 16 feet per hour. The contractor gets paid according to the usage of the equipment. $100 per hour. The expected average annual usage is 500 hours, and maintenance and operating costs will be $10 per hour. The contractor will depreciate the equipment by using a five-year MACRS, units-of-production method. At the end of five years, the excavator will be sold for $100,000.(a) Assuming that the contractor's marginal tax rate is 35% per year, determine the annual after-tax cash flow.(b) Is this a good investment if the contractor requires 15% return on investment?
- Alfred Home Construction is considering the purchase of five dumpsters and the transport truck to store and transfer construction debris from building sites. The entire rig is estimated to have an initial cost of $142,500, a life of 8 years, a $8500 salvage value, an operating cost of $40 per day, and an annual maintenance cost of $8000. Alternatively, Alfred can obtain the same services from the city as needed at each construction site for an initial delivery cost of $125 per dumpster per site and a daily charge of $34 per day per dumpster. An estimated 19 construction sites will need debris storage throughout the average year. If the minimum attractive rate of return is 11% per year, how many days per year must the equipment be required to justify its purchase? The number of days per year the equipment must be required is determined to beAlfred Home Construction is considering the purchase of five dumpsters and the transport truck to store and transfer construction debris from building sites. The entire rig is estimated to have an initial cost of $125,000, a life of 8 years, a $5000 salvage value, an operating cost of $40 per day, and an annual maintenance cost of $2000. Alternatively, Alfred can obtain the same services from the city as needed at each construction site for an initial delivery cost of $125 per dumpster per site and a daily charge of $20 per day per dumpster. An estimated 45 construction sites will need debris storage throughout the average year. If the minimum attractive rate of return is 12% per year, how many days per year must the equipment be required to justify its purchase?A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $70,000 with $3,000 salvage value after 16 years. The other can be purchased and installed for $110,000 with $4,000 salvage value after 16 years. Operation and maintenance for each is expected to be $18,000 and $14,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a income-tax rate of 25%, and a MARR of 9% after taxes. Comment on the differences in AWAT for each of these three analyses - Use MACRS-GDS(10) alone. Use MACRS-GDS(10) with 50% bonus depreciation. Use MACRS-GDS(10) with 100% bonus depreciation.
- A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $70,000 with $3,000 salvage value after 16 years. The other can be purchased and installed for $110,000 with $4,000 salvage value after 16 years. Operation and maintenance for each is expected to be $18,000 and $14,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a income-tax rate of 25%, and a MARR of 9% after taxes. Solve, a. Determine which alternative is less costly, based upon comparison of after-tax annual worth. b. What must the cost of the second (more expensive) conveyor be for there to be no economic advantage between the two?An investment is made with an expenditure of $150,000 at the start of the project. The income from the project at the end of each year for 5 years is $80,000, $90,000, $85,000, $70,000 and $60,000. The maintenance will cost 3000 $ for the first year and it increments by 2000$ from second year onwards. The salvage value is $65000. Draw a CFD for the project and give the analysis of the project based on the CFD.A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $90,000 with $4,500 salvage value after 16 years. The other can be purchased and installed for $110,000 with $2,000 salvage value after 16 years. Operation and maintenance for each is expected to be $21,500 and $12,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40%, and has a MARR of 9% after taxes. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Part a Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Conveyor 1: $ Conveyor 2: $ Alternative 1