When compounded Bi-monthly, P15000 becomes P22,318.30 after 5years. How will it take a money to double itself if invested at 5% compounded annually? O 13.3 years O 14.2 years 12.3 years O 11.5 years A hydraulic machine cost P180,000.00 has a salvage value of P15,000.00 at the end of its useful life which is 12 years. If the depreciation at the first year is P13,750.00. Assume money is worth 7.64% annually. What method is used in computing the depreciation? Straight Line Method O Sinking Fund Method O Service Output Method O Declining Balance Method

When compounded Bi-monthly, P15000 becomes P22,318.30 after 5years. How will it take a money to double itself if invested at 5% compounded annually? O 13.3 years O 14.2 years 12.3 years O 11.5 years A hydraulic machine cost P180,000.00 has a salvage value of P15,000.00 at the end of its useful life which is 12 years. If the depreciation at the first year is P13,750.00. Assume money is worth 7.64% annually. What method is used in computing the depreciation? Straight Line Method O Sinking Fund Method O Service Output Method O Declining Balance Method

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

A new machine will cost P17000 and will have an estimated salvage value of P11000 in five years. Special tools for the new machine will cost P5000 and will have a resale value of P2500 at the end of five years. Maintenance costs are estimated at P200 per yr. What will be the average annual cost of ownership during the next five years if interest is 6%?
A four-stroke motorbike costs P75 000.00. It will have a salvage value of P10 000.00 when worn out at the end of eight years. Determine the annual replacement deposit using the SFM at 5%.
A machine cost ₱100,000 with salvage value of ₱10,000 after 10 years. Ifthe annual maintenance and operation amounts to ₱10,000, annual tax and insuranceamounts to ₱2,000. If the machine will deliver an annual revenue of ₱30,000, is itprofitable? Take i=15%.
An investment in a certain project can be recovered in 10 years. The investment has no salvage value. If the net income before taxes from this investment is P10,000 annually and income taxes are 20% each year, how much is the cost of investment if depreciation charges are P10,000 annually?
A machine which costs P100,000 when new has a lifetime of 15 years and a salvage value equal to 20% of its original cost. If interest rate is 10% compounded annually, what is the capital recovery of the machine?
A buffing machine is costs P10,000. Its estimated scrap value is P1,000 after 10 years. Solve for the constant depreciation per year(d) with 7% interest rate.Use Sinking Fund Method
A certain machine costs GH¢25000 and lasts 6 years, after which time it has a scrap valueof GH¢5000. Annual maintenance costs are GH¢800. If money is worth 8% per annum, and the capitalized cost of the machine.
₱50000 is invested in a machine, in which it has an annual total cost of ₱3000 and a salvage value of ₱4000 at the end of 10 years. Find the equivalent uniform annual cost of this cycle. Money is worth 6%
I have purchased a machine worth P1,665,509.00. And it needs maintenance at the end of every 6 months starting 5 years after its purchased date and maintenance will be needed for the next 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?
An asphalt road requires no repairs until the end of 2 years. At the end of 3rd year, P90,000 will be needed for repairs for the next 5 years, then P120, 000 at the end of each year for the next 5 years. If moneyis worth 14% compounded annually, what is the present value of the repair cost and its equivalent uniform annual cost for the 12-year period?
If machine has a first cost which is five times of its salvage value and the annual depreciation charge is equal to P1,452.00 and a recovery period of 14 years. How much is the first cost in pesos?
An investment in a certain project can be recovered in 10 years. The investment has no salvage value. If the net income before taxes from this investment is P10,000 annually and income taxes are 20% each year, how much is the cost of investment if depreciation charges are P10,000 annually? a. P100,000 b. P180,000 c. P150,000 d. P80,000

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