A factory installed a machine it is expected that there is no maintenance expenses until at the end of 11 years when P200.00 will be spent at the end of each successive year until it become scrap at the age of 25 years. What sum of money set aside at his time at 4% interest will take care of all maintenance expenses for the boiler? O a. P3,124.42 O b. P3,142.42 O c. P3,214.42 O d. P3,412.42
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- Accountings The first cost of an electric rebar bender is P364,000 and a salvage value of P45,000 at the end of its life for 5 years. Money is worth 5.9% annually. If there is no salvage value and the annual maintenance cost is P16,000, find the annual cost of perpetual service. Express your answer in whole number.1. A new generator has just been installed. It is expected that there will be no maintenance charges until the end of the sixth year, when P 300.00 will be spent on the generator and P 300.00 will be spent at the end of each successive year until the generator is scrapped at the end of the fourteenth year of service. What sum of money set aside at the installation of the generator at 6% interest will take care of all maintenance expenses for the generator?A machine costs P150000 The book value at the end of 2 years is estimated to be P870000. If the salvage value the end of its useful life is P600000. What os the machine's economic life in years using the sum of years method.
- ME Board Exam October 1997 01. A company puts P25 000.00 down and will pay P5000.00 every year for the life of a machine for 10 years. If the salvage value is zero and the interest rate is 10% compounded annually, what is the present value of the machine? (Ans:- P55 723.00) An electric generator is purchased for P80 000.00, it is expected to be used for five yoars, and then sold for P15 000.00. Annual operating and maintenance costs are estimated at P20 000.00. Using a discount rate of 10%, determine the present worth of the investment. 02. (Ans. - P146 502.00) 03. CE Board Exam November 1999 To maintain its newly acquired equipment, the company needs P40 000.00 per year for the first five years and P60 000.00 per year for the next five years. In addition, an amount of P140 000.00 would also be needed at the end of the fifth and the eighth years. At 6% interest, what is the present worth of these costs? (Ans. - P549 812.00)A machine estimated to have a life of 20 years is purchased. There is no maintenance required for the first 10 years but will require P 2000 per year for the second 10 years. How much must be invested annually at 3.5% interest during the life of the machine to pay off the maintenance costs? A. P 820 B. P 825 C. P 830 D. P 835Mr. Sanchez's new machine has been installed. Based on the contract and warranty, there will be no maintenance cost for the first 2 years, if the machine will be scrapped at the end of 16th year and the maintenance cost of P500 will start at the end of 3rd year, how much is the present maintenance cost if the money is worth 7% per annum? What is n? periods What is m? periods What is the present maintenance cost? (2 decimal places only, rounded off. if whole number, no need to add.00)
- The Owner of Blue Bayou Café usually pays his appliance (refrigerators, dish washers, and freezers) maintenance contract by the year. If he projects the annual costs shown, find the equivalent A value for years 1 through 5. Year Cash Flow, $/Year Estimated i Per Year 0 0 1– 3 5000 10% 4– 5 7000 12%Question 2. I have purchased a machine worth ₱1,893,877.00. And it needs maintenance every 6 months starting from its purchased date for the first 10 years of its useful life. The maintenance cost is equivalent to the 2% of the total machine cost. How much money should be prepare today to finance the requirement if the interest rate is 0.10 compounded quarterly?Assume a vat of 15 % One way trader is a registered vat vendor and the financial year end is 31 December 2020.on 1 January 2019 new equipment was bought at cost of R6325 (vat included) the machine has useful life span of 5 years depreciation on machines is calculated on the straight line method What is the depreciation amount?
- Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of every year of a machine whose purchase value is 25,000$. Find the economic life of the machine assuming interest rate, i = 15%. End of Year (n) 1 2 3 5 6 7 68 9 10 Cost operation at the end of year ($) 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 Maintenance cost at the end of year ($) 300 400 500 600 700 800 900 1000 1100 1200 Salvage value ate end of the year ($) 9000 8000 7000 6000 5000 4000 3000 2000 1000 500• Example A machine with a cost of $200 000 & useful life of 8 years was acquired at the beginning of year 1. The machine is revalued every 2 years and the revaluation reserve will be regarded as realised only when the machine is sold. The net replacement cost of the machine was as follows; Beginning of year 3 Beginning of year 5 Beginning of year 7 $160 000 $95 000 $50 000 How will the revaluation increases/decreases be accounted for?PS Builders Co purchases a new excavator costing £48,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £9450. If the reducing-balance method of depreciation is used, applying an annual depreciation rate of 15%, what is the annual depreciation charge in Year 2? O A. £4,000 B. £6,120 O C. £4,400 O D. £5,610