14. A rice production company has purchased its millingequipment. The cost of this is 5,000,000. Salvagevalue after five years is 1,000,000. If its book value atthe end of three years is 1,800,000, what type ofdepreciation was used in computing its book value?Solution is required to prove your answer.A) Straight Line MethodB) Sum of the Years' Digit MethodC Declining Balance MethodDouble Declining Balance MethodE Sinking Fund MethodModified Accelerated Cost Recovery SystemMethodFG) Working Hours Method(H) Service Output Method

Given The initial cost of equipment (P)=5,000,000 Salvage value (F)=1,000,000 Life =5 years Book…

Answered: A rice production company has purchased…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 39 An electronios balance costs P89,000 and has an estimaled salvage value of Po 000 al the end of its 8 years ifetime. What would be the depreciation after three years, using the sum of the years digit in solving for the depreciation? Express your answer in whole number K< Question 39 of 56
Does the recognition of depreciation expense affect cash flows? Why or why not?
Sinking Fund MethodGiven:FC = 2,000,000.00 pesosSV = 300,000.00 pesosi = 12.00%n = 9 yearsa. Annual depreciation = ?b. Total depreciation after 6 years= ?c. Book value at year 7 = ?
Using the double declining balance depreciation method for an asset purchased at the start of 1019 w/an annual cost of $85,000, a salvage value of $2,500, and a depreciable life of 12 years, the book value at the end of 2023 is most nearly waht amount? a. $40,990 b. $36,238 c. $34,160 d. 28,500 e. $23,720 Please use excel and show formulas.
An auto company purchase a new truck for their transportations at a price of $350,000. The company expects to use the truck years. expected salvage value of the truc k is $50,000 after the end of its tenth years of useful life. Use the SOYD method of depreciation to calculate the By of the truck after 2 year? A: $54,545 B: $246,394 C: $249,091 D: $103,636
Define the term Depreciation?
What will be the cost of an asset, if its salvage value is 300 after 5 years and annual depreciation charge is 500, use the Straight Line Depreciation rule. Select one: a. 2800$ b. 2750$ c. 2840$
Eng. Economics. Your small consulting company is evaluating a circuit board testingmachine. The device costs $35,000, and the maker estimates that itwill have a salvage value of $6,000 after 5 years of use. Determinethe annual depreciation.
4 03:16:23 Mc Graw Hill Determine if each item below is a traceable or a common fixed cost. Depreciation on equipment used only by one segment Multiple Choice Traceable fixed cost Common fixed cost
Use declining-balance depreciationUse Double declining balance depreciatinUse double declining balance,switching to straight-line depreciation Provide depreciation and book value for year 2
iven:Type of Equipment: Office furniturePurchase price = $2400Useful life = 10 yearsEstimated salvage value $200 What would be the first year's depreciation if Double Declining Balance depreciation is used? (assume no conversion to straight-line is intended)
A. When the price =50000-500(Demand) and the variable cost-$3000 per unit, the value of demand that maximize the profit B. The installation cost of a machine is $10000 with estimated life of 10 years and selvage value of $2000 at the end of the 10th year. What will be the annual depreciation cost in the fourth year (using straight line method)? C. Suppose that the initial cost of a certain operation is $25000 at the beginning of the first year. The expenditures are expected to be ($1500) at the end of the first year, $1000 at the end of second year, and to increase by $500 at the end of each of the next 4 years. The salvage value at the end of the 8th year is $1500. Draw the cash flow diagram. D. The Present worth (PW) of 5 annual payment of $10000 paid at the end of the each of the 5 years with interest rate of % 16 compounded quarterly is. E. The Future worth at the end of the 4 years (FW4) of the four $2000 annual payment paid at the beginning of each of the 4 years (shown in Figure…

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