Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 9, Problem 42P
(a):
To determine
Calculate the
(b):
To determine
Calculate the capital gain in 5 year.
(c):
To determine
Calculate the capital gain in 6 year.
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Students have asked these similar questions
Your business buys a delivery van for $28,000. You figure the van will be useful for 5 years and have a value of $5,000 at the end of the 5-year period. What is the (a) basis, (b) useful life, (c) salvage value, (d) depreciable basis, (e) accumulated depreciation at the end of year 2 if you take $4,600 depreciation each year, and (f) the book value at the end of year 2?
2- The marginal cost for year t is computed as SV, - SV-1+SV¢ • i+ Cost, where SV
denotes salvage value.
a) TRUE
b) FALSE
3- Replacement rule implies replacing the existing asset when the marginal cost of the
existing asset is more than the marginal cost of the new asset.
a) TRUE
b) FALSE
4- Depreciation recapture occurs when the market value of an asset is greater than the
book value.
a) TRUE
b) FALSE
5-
Year
1
SV
O&M
15,000 1000
12,000 1500
9.000
2
3
2000
The table above lists salve value (SV) and operating and mainteriance (O&M) cost of an asset
through 3 years with the initial cost of $20,000. Given MARR is 10%, which of the statements
is correct (choose the closest answer)?
a) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is
$6,500
b) The marginal cost at year 2 is $6,000 and the annual cost (EUAC) through year two is
$7,048
c) The marginal cost at year 2 is $6,500 and the annual cost (EUAC) through year two is
$7,048
d) The marginal cost at…
An asset costs $150,000 and has a salvage value of $15,000 after 10 years.What is the depreciation charge for the 4th year, and what is the book value atthe end of the 8th year with(a)Straight-line depreciation?(b)Double declining balance depreciation?
Chapter 9 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6PCh. 9 - Prob. 7PCh. 9 - Prob. 8PCh. 9 - Prob. 9PCh. 9 - Prob. 10P
Ch. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Prob. 13PCh. 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. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - Prob. 30PCh. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Prob. 46PCh. 9 - Prob. 47PCh. 9 - Prob. 48PCh. 9 - Prob. 49PCh. 9 - Prob. 50PCh. 9 - Prob. 51PCh. 9 - Prob. 52PCh. 9 - Prob. 53PCh. 9 - Prob. 1STCh. 9 - Prob. 2STCh. 9 - Prob. 3STCh. 9 - Prob. 4ST
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