If Kim buys a car for $30,000 with an estimated life of 5 years, with a residual value of $5,000, what is the book value at the end of year 4?  Assume straight-line depreciation

1 A new backhoe costs Bob the Builder $X. It is expected to have a salvage value of $Y after N years. What rate of depreciation for the declining-balance method should Bob be using? X= Y= N= Depreciation Rate $750,000 $58,000 29 years Try Again What is the Book Value after 25 years? Try Again (Use unrounded rate)

What is the bid price for the following situation: You have been approached by a client interested in buying 130,000 widgets a year from you for 5 years and has asked you to submit a bid for his consideration. To be able to produce these widgets, you need to invest in $830,000 in equipment. The equipment has a taxable life of 10 years and will be depreciated using straight line. At the end of the 5 years, the equipment can be sold for $60,000 (market or scrap value). The variable cost of producing the widgets is $8 per unit and you will incur in a fixed cost of $210,000 a year. You have estimated you will need $70,000 today in working capital. The appropriate discounting rate for this type of projects is 14%. The corporate tax rate applicable to you in this case is 30%. What is the minimum price you would charge for each widget (bid price to be given by you to the client)?

3. Samson bought a new cutting machine for P5,000,000.00. The machine could be sold for P50,000.00 after 20 years of use. What is the Book Value of the machine after 12 years? Compute using a) Straight Line Method and b) any other accepted method.

Your business buys a desk for $3,000.  You figure the desk will be useful for 10 years and have a value of $500 at the end of the 10-year period.  For financial accounting purposes, what is the asset’s depreciable basis?

QUESTION 9 Bob buys a property that costs $1,000,000. The property is projected to generate NOI as follows: Year NOI $100,000 1 2 $105,000 3 $110,000 Bob will own the property for two years. Bob will sell the property at the end of year 2 at a cap rate that is 250 basis points lower than the cap rate at which he bought the property. What is Bob's annualized IRR for the investment in question A. 26.21% B. 30.47% C. 27.78% D. 14.89%

Reconstruction cost on your new home is $500,000. You decide to insure it for only what you paid for it - $375,000. 2 years later you have a $150,000 loss. How much will your insurance company pay? $125,600 O $140,625 $150,000 O $75,000