Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 12, Problem 5P
(a):
To determine
Calculate the net cash flow.
(b):
To determine
Selection of project with Increasing O%M cost..
(c):
To determine
Breakeven salvage value.
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A new barcode reading device has an installed cost basis of $22,100 and an estimated service life of eleven years. It will have a zero salvage value at that time. The 200% declining balance method is used to depreciate this asset
a. What will the depreciation charge be in year eleven?
b. What is the book value at the end of year ten?
c )What is the gain (or loss) on the disposal of the device if it is sold for $2,800 after ten years?
A stamping machine is classified as seven-year MACRS property. The costbasis for the machine is $120,000, and the expected salvage value is $10,000 at the end of 12 years. Compute the book value at the end of three years for tax purposes.
A machine now in use was purchased four years
ago at a cost of $30,000. It has a book value of
$9,369. It can be sold for $12,000, but it could be
used for three more years, at the end of which
time, it would have no salvage value. What is the
current amount of economic depreciation for this
asset?
Choose from the folowing,
$12,000
$18,000
$32,000
$48,000
Chapter 12 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10PCh. 12 - Prob. 11P
Ch. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Prob. 28P
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