First cost, $ -800,000 Equipment replacement cost in year 2, $ - 300,000 Annual operating cost, $/year -950,000 Salvage value, $ 250,000 Life, years 4
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- What is the most appropriate Analysis Period for the four different alternatives shown below? Item First Cost Uniform Annual Benefit Salvage Value Useful Life in Years Machine 1 $1,244,565 $273,804 $124,456 12 Machine 2 $2,297,397 $413,531 $229,740 20 d. 60 years e. 12 years Machine 3 $8,585,814 $1,416,659 $858,581 60 Machine 4 $3,737,193 $672,695 $373,719 30 Incremental Analysis (AIRR) b. 12 years for Machine 1; 20 years for Machine 2; 60 years for Machine 3; and 30 years for Machine 4 c. The average of the useful lives of the different alternatives, in this case, 30.5 yearsAssuming modified accelerated cost-recovery-system depreciation and an economic life of five years, what is the book value after three years of an asset of initial cost P? OA. 0.288P OB. 0.422P OC. 0.808P OD. 0.852PUse the following data: Asset cost $120,000 Expected life 4 years Estimated salvage value $12,000 Using the sum-of-the-years-digit method, the amount of depreciation for the third year would be Question 12 options: $28,000. $21,600. $30,000. $48,600.
- Question 10 Problem 3- Equipment Replacement (Reemplazo de equipo) Corvallis Company is considering purchasing new equipment. The m nuevo equipo. El gerente ha recopilado la siguiente información: Current Machinery - Maquinaria Actual Original cost-Costo original Accumulated depreciation - Depreciación acumulada Annual operating costs - Costos operacionales anuales Current market value - Valor actual en el Mercado Salvage value at the end of five years - Valor residual al final de 5 años New Machinery: - Maquinaria Nueva $25,000 20,000 5,500 750 0 600.000Three alternatives have the following cost data associated with them: Data Alt. 1 Alt. 2 Alt. 3 Useful Life, Years 10 10 10 First Cost $1,325,000 $1,980,000 $1,650,000 Annual Benefit 265,000 589,000 435,000 Annual M&O Costs 95,000 97,000 91,000 Annual M&O Gradient 2,300 2,100 1,980 Salvage Value 145,000 205,000 178,000 Loan Payment 150,946 225,565 187,971 The loan payments are calculated using an interest rate of 10%, a life equal to the life of the machine, and a down payment of 30%. Use a MARR of 12% and determine which machine, if any, should be purchased. Use incremental analysis.Calculate profit/loss on disposal Cost : rm20000( 1jan 21) Deepreciation : 25% straight line Residual value: rm2000 Disposal date : 31 dec 21 Cash received :rm10000
- Calculate the annual depreciation rate: RCN - $500,000, Sale price - $455,000, Effective age - 8 years, Site Value - $25,000 1.75% 14.00% 16.28% 2.03%onsider the following data on an asset:Cost of the asset, I $235,000Useful life, N 5 yearsSalvage value, S $ 60,000Compute the annual depreciation allowances and theresulting book values, using(a) The straight-line depreciation method.(b) The double-declining-balance methodGiven the problem: Conduits made of Timber First Cost $ 50,025.34 Estimated Life 13 years Scrap Value $ 2,992 Annual Maintenance $ 1,301 Interest 0.086 What is the Capitalized Cost?
- The manager of a canned food processing plant is trying to decide between two labeling machines. Determine which should be selected on the basis of rate of return with a MARR of 20% per year.original cost $425000, useful fife 5 years, current useful life 2years, remaining useful life 3 years, accumulated depreciation 195000,current book value 230,000 current disposal 120000, final disposal for the 3years is 0. what is the depreciation expense for year 14. A company is considering one of the following 3 mutually exclusive alternatives. Project Initial Investment operating Cost per year Revenue per year Salvage value Life (years) A B $63,000.00 $61,000.00 $15,000.00 $11,000.00 $38,000.00 $26,000.00 $12,000.00 $17,500.00 6 4 C $85,000.00 $13,000.00 $35,000.00 $16,000.00 12 If the company uses a MARR of 8%, which of the alternatives will they select using Present Worth Analysis?