Problem 3: A certain machine costs P 40,000, has a life of 4 years and salvage value of P 5,000. The production output of this machine per year is given below. units of output 1,900 Year 1 2 2,400 3,200 2,500 3 4 Compute the book value of the machine at the end of the third year.

Problem 3: A certain machine costs P 40,000, has a life of 4 years and salvage value of P 5,000. The production output of this machine per year is given below. units of output 1,900 Year 1 2 2,400 3,200 2,500 3 4 Compute the book value of the machine at the end of the third year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Apart from local unemployment, brain-drain or the immigration of local Filipino experts and talents ...

A: Brain Drain:- Brain drain is characterised as extremely competent or educated persons migrating to ...

Q: 80 70 SWE DEN NOR 60 NLD FIN 50 NZL JPN CHE CAN AUS 40 AUT ESP "IRL ITA DEU USA 30 GBR BEL GRC ISR 2...

A: i. Statement 1: R square measures the goodness of the fit not the direction of the relation. We can ...

Q: In your opinion, what will happen to the employment/workforce in the United Kingdom if they still re...

A: Meaning of Full Employment: The term full employment refers to the situation under which all the w...

Q: TOPIC: ENGINEERING ECONOMICS "Compound Interest" SPECIFIC INSTRUCTION: Show a systematic solution an...

Q: Basing from the profit equation, what among the variables is most dependent to a change in price? Wh...

A: Profit is the difference between total revenue and total cost. Total revenue is the revenue that is ...

Q: The table below represents Sue’s preferences for bottled water and soft drinks, the combination of w...

A: The marginal rate of substitution or MRS. implies to the rate at which one good can be substituted f...

Q: 37.Tragedy of the Commons: There are 400 bonus points available on this exam. Please choose how many...

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...

Q: Q1) Supply and demand equation are given by: Qd= -2Pd +100 Qs= Ps - 5 a) Find market equilibrium? b)...

A: Equilibrium in the market is at such a price where the quantity demanded is equal to quantity suppli...

Q: How can a central bank decrease the money supply? O a. By selling securities O b. All of the answers...

A: Money supply Money supply basically refers to the total amount/volume of money that people helds at ...

Q: B. Under market condition, firms make normal profits in the long run.

A: To find : Under which market firm make profit in long run.

Q: Today, Americans recycle what percentage of their municipal solid waste? 15 percent 28 percent O 33 ...

A: The 292.4 million tonnes of municipal solid waste (MSW) generated in 2018 are classified into two ca...

Q: Question 2 In the context of the monetary approach to the determination of the exchange rate, what i...

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: Which of the following is true about standard deviation? The first step in calculating the stand...

A: Standard Deviation is used to measure the dispersion of data with relation to mean.

Q: Determine the exact and ordinary simple interests on ₱1,200 for the period from January 16 to Novemb...

A: Given: The principal amount is = ₱1,200 The time period is between = January 16 to November 26, 1992...

Q: 5. A ceramics manufacturer sold cups last year for P7.50 each. Variable costs of manufacturing were ...

A: The term “income statement” refers to a financial statement that shows the net income produced from ...

Q: Public goods have features that distinguish them from private goods. Select and drag the correct ans...

A: Non-excludable: - it is a condition where a person cannot stop another person from using a good or s...

Q: :0. Economic survey is published by

A: To find : Who publish economic survey.

Q: Which of the following statements correctly describe discouraged workers? (If none of the choices ap...

A: A discouraged worker is not part of labor force because the individual is not actively looking f...

Q: :6. Utility means

A: To find : What is meaning of utility.

Q: Shunda is a calculator assembly company, purchase a full set of the calculator parts, assembled into...

A: Production Function is defined as the maximum output that can be produced with a given set of inputs...

Q: Estimate the following model: In exports Bo + B1 ln gdp_d + B2 In dist_d + B3comlang + B4 (In dist_d...

A: The given model is: ln exports =β0+β1 (ln gdp.d) +β2(ln dist.d) +β3(comlang) +β4(ln dist.d*comlang)+...

Q: explain what is post heckscher-ohlin model?

A: The Heckscher-Ohlin model suggests that countries export what they are best at producing in economic...

Q: pital each increase by 8% and output also increases by 3%. The production function exhibits_ returns...

A: Production function shows the relationship between the input and output.

Q: Refer to the figure at right. At which point on the total product curve is the average product of la...

A: Total product refers to total output produced by the firm. Average product refers to total product p...

Q: Although documentaries often record events as they are occurring, sometimes events in a documentary ...

A: This statement is true.

Q: Which of the following is a benefit of having a flexible exchange rate? a. Crowding-out effects crea...

A: When talking about flexible exchange rate system, government does not require to enter the market to...

Q: When the price of shirts emblazoned with a college logo is $20, consumers buy 150 shirts per week. W...

A: According to the question, When the price of a college logo t-shirt is $20, people will buy 150 sh...

Q: Define opportunity cost. What is your opportunity cost for attending a class at 11:00 am? How does i...

A: The potential gains that a person, investor, or organisation loses out on when choosing one choice o...

Q: (1) If you have been hired at an annual salary of $23,000 and expect to receive annual increases of ...

A: Inverse of a function is found by finding x in terms of y.

Q: 47. A firm encounters its 'shutdown point' when A. O Average total cost equals price at the profit-m...

A: The expenses that are being incurred by the firm for carrying out its day-to-day transactions are kn...

Q: The density function of a random variable X is given in the table below, answer following: Probabili...

A: Answer (a) The probability that X will be lies between 1 and 3 or P(1 < X > 3) = P (X = 2) = 0...

Q: Quantity Demanded Price $8 $7 $6 $5 8 $4 9 $3 10 $2 11 TABLE 10- 1 Refer to Table 10 - 1. For a sing...

A: A monopoly refers to the market condition in which a single seller control the whole market and have...

Q: 20. Each year a single payment of P1766 is deposited in an account that earns 6% compounded continuo...

Q: 1. Consider a two-period model in which you work and save in the initial period (period 0) and live ...

A: Disclaimer: Since you have posted a multi-part question, I am providing you with the answer to the f...

Q: Consider the market for low-skilled labor where firms demand labor and workers supply labor. The pri...

A: Equilibrium wage is given where the market labor demand equals market labor supply. As is already me...

Q: 20. What are the functions of the House Ways and Means Committee? a) To propose legislation that gov...

A: Ways and Means Committee is a government body that is concerned with reviewing and making recommenda...

Q: 9-3. Tyson Brothers Manufacturing is currently earning economic profit. However, the market for the ...

Q: In 2021, a nation’s population was 10 million. Its nominal GDP was $40 billion, and its price index ...

A: Economic growth is calculated as a percentage change of real GDP per capita of two countries.

Q: A profit-maximizing monopolist finds that if it remains open, the best output is 50 a week, but at t...

A: Monopolist A monopolist refers to a individual or a firm that controls and dominates a market for a ...

Q: Suppose the rate of economic growth in Sealand was 5%, capital growth 6%, and labor growth 3%. If la...

A: Let's assume there is a cobb-Douglas production function: Y = AKaL1-a Where Y is output A is product...

Q: At the start of 1996, the annual interest rate was 8 percent in the United States and 4.8 percent in...

A: The exchange rate is the rate at which one currency can be purchased by another currency.

Q: Suppose there is a 1% inflation shock, the Phillips curve beta is 2, the output gap is 1% and inflat...

A: The Phillips curve shows the inverse relationship between two variables that are inflation rate and ...

Q: Illustrate on a supply and demand diagram how price ceilings may distort the market outcome, and spe...

A: Price control is defined as the measures adopted by the government to maintain the welfare of both c...

Q: According to Marshall, the basis of consumer surplus is Law of diminishing MU

A: To find : What is basis of consumer surplus.

Q: What is one challenge you may face when trying to "barter" for goods? Why would you face that challe...

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...

Q: Consider a two-period model in which you work and save in the initial period (period 0) and live off...

A: r= 0.5 Y0= $250,000 Y1= $0

Q: . If the marginal (additional) opportunity cost is a constant then the PPC would be

A: To find : Value of PPC.

Q: 33. For inferior commodities, income effect is

A: To find : What is income effect for inferior commodities.

Q: Directions: Using the table below, calculate the following requirements: 1. Growth rates of each nat...

A: Gross domestic product refers to the total market value of final goods and services that are produce...

Q: Is the relationship between total fertility rate and the rate of enrollment of girls in secondary sc...

A: Yes, the overall fertility rate and the rate of female secondary school enrolment are linked.

Question

Please answer what is asked and show complete detailed solution. Thank you.

Problem 3: A certain machine costs P 40,000, has a life of 4 years and salvage value of
P 5,000. The production output of this machine per year is given below.
Year
units of output
1,900
2,400
3,200
2,500
3
4
Compute the book value of the machine at the end of the third year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Mang Danny bought a piece of equipment for P1,000,000. He spent an additional amount of P300,000 for installation and other expenses. The salvage value is 15% of the first cost. If the book value at the end of 7 years will be P333,125 using SLM, compute the useful life of the equipment in years. Add your answer
Economics Last year, a decision was made to keep the same equipment in lieu of buying new equipment. The old equipment's trade-in value last year was $4000 and its value this year is $2000. The operating cost was $700 last year. If bought last year, the new equipment would have cost $13K, the salvage value after 8 years would be $2000, and it would have an annual operating cost of $4000. If bought last year, what would have been the EUAC of the new equipment (in dollars) at 16% interest rate per year? (provide your answer in the box as a negative value if you arrive at costs) What would have been the correct decision? (provide your answer and justification in your pdf file submission)
Two lathes are being considered in the manufacture of certain machine parts. Data is given below, all cost in peso: LATHE A LATHE B First Cost 40,000 56,000 Salvage Value 5,000 7,000 Annual Maintenance 2,000 2,800 Operation, Cost/hour 4 3.5 Life, in years 10 12 Time per part (hours) 0.40 0.25 REQUIRED: Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical if the MARR is 18%. Use AWM If the number of parts is 10,000 units, which lathe will you recommend? Use ROR If the number of parts is 10,000 units, which lathe will you recommend? Use PWM If the number of parts is 10,000 units, which lathe will you recommend? Use EUAC
A resistor has a selling price of P 400. It it’s selling price is expected to decline at a certain rate of 10% per annum due to obsolescence, what will be it’s selling price after 5 years?
A man has purchased a new automobile. He wishes to set aside enough money in a bank account to pay the maintenance on the car for the first 5 years. It has been estimated that the maintenance is as follows For year- 1 the maintenance cost =$120, year- 2 the maintenance cost =$150, year- 3 the maintenance cost =$180, year- 4 the maintenance cost =$210, year- 5 the maintenance cost =$240. Assume the maintenance costs occur at the end of each year and that the bank pays 5% interest. How much should the car owner deposit in the bank now? Answer: G = $ A/G = $ ATotal = $ POTotal = $
. Calculate the present worth of a machine which costs $105000 initially and has a 10 year life with a $20000 salvage value. The operating cost of the machine is expected to be $6000 in year 1(end_of_year) and $6600 in year 2, and amounts increasing by the 10% through its 10-year life. Use an interest rate of 12% per year. Please don't used excel I again says don't used excel
A company has a production capacity of 500 units per month and its fixed costs are P 250,000 a month. The variable costs per unit are P 1,150 and each unit can be sold for P 2,000. Economy measures are instituted to reduce the fixed costs by 10% and the variable cost be 20%. Determine the old and new break-even point, old and new monthly profit at 100% capacity.
An asset has a first cost of $11,000, an annual operating cost of $9000 and a salvage value of $5000 after 3 years. Calculate the annual worth for one cycle at i = 20% 12848- 57762- 43755- 7353- o оооо
A manufacturer is considering replacing a production machine tool. The new machine, costing $3700, would have a life of 4 years and no salvage value, but would save the firm $500 per year in direct labor costs and $200 per year indirect labor costs. The existing machine tool was purchased 4 years ago at a cost of $4000. It will last 4 more years and will have no salvage value at the end of that time. It could be sold now for $1000 cash.Assume that money is worth 8% and that the difference in taxes, insurance, and so forth, for the two alternatives is negligible. Use an annual cash flow analysis to determine whether the new machine should be purchased.
The monthly demand for ice cans being manufactured by Alpha Co. is 3,000 pieces. With a manual tool, the unit cutting cost is $25.00. An electrically operated tool was offered at a price of $250k and which will cut by 20% the unit cutting cost. How many months will the Co. be able to recover of the machine if they decide to buy the electrically operated tool now?
3 Your company plans to raise price on product A by 5% per year. Due to competition, sales volume from product A is expected to decline at 10% per year. Revenue will be $5M for this year. Alternatively, based on the projection from the marketing department, you may reduce the sales volume decline from 10% to 5% if the price is kept unchanged. The product will be discontinued at the end of year 5 for both scenarios. If the firm's TVOM is 10%, Determine the revenue cash flow streams for both alternatives. What is the Excel financial function to compute PW of the revenue streams
Correct only pls. Only the highlighted parts. Npv if pretax cost savings are $100000 per year is -121277. 58. Now how to find the last part.