Goodson Healthcare purchased a new sonogram imaging unit for $300,000 and a truck body and chassis for an additional $100,000 to make the unit mobile. The unit-truck system will be depreciated as one asset. The functional life is 8 years, and the salvage is estimated to be 15% of the purchase price of the imaging unit regardless of the number of years of service. Use classical Straight Line depreciation to determine the salvage value, annual depreciation, and book value after 5 years of service.     The salvage value is determined to be $ .   The annual depreciation is determined to be $ .   The book value after 5 years of service is determined to be $ .

A coil winding and unwinding machine that costs $32,000 has a life of 9 years with a $4,000 salvage value. Use classical straight-line depreciation to determine the book value after 7 years.

Hyundai USA has numerous robotic welders as well as robotic checkers with vision. One underbody robotic welder costing $1,200,000 (7-year property class) was installed and is increasing productivity by 2.5% in one area. The result is a savings of $500,000 per year. Deductible expenses other than depreciation and interest associated with the installed robotic welder are only $120,000. Hyundai borrowed $550,000 at 11% for 5 years. They plan to keep the welder for 8 years. Hyundai’s income-tax rate is 25% and their MARR is 9% after taxes. Determine the PW, IRR, for the investment if: The loan is paid back using Plan 3  Plan 3—make equal principal-plus-interest end-of-period payments.

Bison Gear and Engineering of St Charles, IL, makes sensorless and brushless dc gear motors suited for foodservice equipment, factory automation,alternative energy systems, and other specialty machinery applications. The company purchased an asset 2 years ago that has a 5-year recovery period. If the depreciation charge by the MACRS method for year 3 is $14,592, what was (a) the first cost of the asset, and (b) the depreciation charge in year 1?