Kaabigan Builders purchased a testing machine worth 2500000, it has a shipping fee worth 35000 and another 50000 for the installation. If the annual rate is 10%, use the Declining Balance Method, determine (a) Depreciation cost on the 4th year of use (b) Accumulated depreciation after 5 years (c) Scrap value if its n life is 10 years

Kaabigan Builders purchased a testing machine worth 2500000, it has a shipping fee worth 35000 and another 50000 for the installation. If the annual rate is 10%, use the Declining Balance Method, determine (a) Depreciation cost on the 4th year of use (b) Accumulated depreciation after 5 years (c) Scrap value if its n life is 10 years

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Description: ! SHOW FULL SOLUTION !Kaabigan Builders purchased a testing machine worth 2500000, it has a shipping fee worth 35000 and another 50000 for the installation. If the annual rate is 10%, use the Declining Balance Method, determine(a) Depreciation cost o

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter12: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 10P: Dauten is offered a replacement machine which has a cost of 8,000, an estimated useful life of 6...

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Dauten is offered a replacement machine which has a cost of 8,000, an estimated useful life of 6 years, and an estimated salvage value of 800. The replacement machine is eligible for 100% bonus depreciation at the time of purchase- The replacement machine would permit an output expansion, so sales would rise by 1,000 per year; even so, the new machines much greater efficiency would cause operating expenses to decline by 1,500 per year The new machine would require that inventories be increased by 2,000, but accounts payable would simultaneously increase by 500. Dautens marginal federal-plus-state tax rate is 25%, and its WACC is 11%. Should it replace the old machine?
A machine costs P 7,350, has a life of 8 years and has a salvage value of P 350 at the end of 8 years. In how many years from now when you can sell the machine at P 2,294.44 if depreciation used is SYD Method?
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1.A machine costs P 8,000 and an estimated life of 10 years with a salvage value of P500. What is the book value after 8 years using the straight-line method? 2.A company purchases an asset for P10,000 and plans to keep it for 20 years. the salvage value is zero at the end of the 20th year. What is the depreciation value in the 3rd year? Use Sum-of-the-Years-Digits Depreciation Method. For determining For the sum of years, you can use n(n+1)/2 as a formula, where n=useful life Please help me with this, thankyouuu
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The data associated with operating and maintaining an asset are shown below. The company manager has already decided to keep the machine for 1 more year (i.e., until the end of year 1), but you have been asked to determine the cost of keeping it 1 more year after that. At an interest rate of 10% per year, estimate the AW of keeping the machine from year 1 to year 2. Operating Cost, $ per Year Market Value, $ 30,000 25,000 14,000 10,000 Year 0 1 2 3 -15,000 -15,000 -15,000
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