Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 9, Problem 24P
To determine
Replacement of the defender.
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An engineering firm from purchased, 12 years
ago, a heavy planner for P50,000 with no salvage
value. As the life of the planner was 20 years, a
straight line depreciation reserve has been
provided on that basis. Now the firm wishes to
replace the old planner with a new one possessing
several advantages. It can sell the old planner for
P10,000. The new one will cost P100,000. How
much new capital will be required to make the
purchase?
- a. P60,000
- b. P55,000
• c. P66,000
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In order to study the value of the truck that you use in your construction business,
you are using the declining balance method. The truck will be kept only for eight
years. If the original cost of the truck is $170,000, and the estimated market value of
the truck is $10,000 in year eight. What is the depreciation value in year 3?
a) None of the answers are correct
b) Between $23,800 and $24,10O
c) Between $20,900 and $21,200
d) Between $16,100 and $16,400
e) Between $18,100 and $18,400
f) Between $22,900 and $23,200
I need help in figuring out the step by step procedure, performing the operations and calculations manually, using formulas.
One year ago, your company purchased a machine used in manufacturing for $110,000. The current machine is expected to produce EBITDA of $20,000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, after which it will have no salvage value, so depreciation expense for the current machine is $10,000 per year. The market value today of the current machine is $50,000.
You have learned that a new machine is available that offers many advantages; you can purchase it for $150,000 today. It will be depreciated on a straight-line basis over 10 years, after which it has no salvage value.
You expect that the new machine will produce EBITDA (earning before interest, taxes, depreciation, and amortization) of $40,000 per year for the next 10 years.
All other expenses of the two machines are identical.Your company’s tax…
Chapter 9 Solutions
Engineering Economy (17th Edition)
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - A city water and waste-water department has a...Ch. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Use the PW method to select the better of the...Ch. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 25PCh. 9 - Prob. 26PCh. 9 - Prob. 27SECh. 9 - Prob. 28SECh. 9 - Prob. 29CSCh. 9 - Prob. 30CSCh. 9 - Prob. 31CSCh. 9 - Prob. 32FECh. 9 - Prob. 33FECh. 9 - Prob. 34FECh. 9 - Prob. 35FECh. 9 - Prob. 36FE
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