Q- A new street seeping equipment can be purchased for $ 75000. Its expected useful life...
Q- A new street seeping equipment can be purchased for $ 75000. Its expected useful life is eight years, at which time its market value will be zero.
Annual receipts less expenses will approximately $ 20000 per year over eight year study period. Use the PW method and MARR of %15 to determine whether this is good investment ?
Use hand calculations to solve it!
Homework Answers
Under the PW method we have
PW = initial cost + annual benefits (net) (P/A, i%, n)
We then have
PW = -75000 + 20000(P/A, 15%, 8)
PW = -75000 + 20000 * (1.15^8-1) / (0.15*1.15^8)
= $14,746.43
Hence, the PW is $14,746.43
PW is positive so this is a good investment
Add Answer to:
Q- A new street seeping equipment can be purchased for $ 75000.
Its expected useful life...
a new utility service truck can be purchase for $64,532. its expected useful like is six...
a new utility service truck can be purchase for $64,532. its expected useful like is six years, at which time its market value will the zero. Annual receipts less expenses will be approximately $24,162 per year over the six year study period. compute present worth(pw) with a MARR of 20% to determine wheter this is good investment. life*
Question Details machine Purchased for $50000 and has a useful life of 3 years. Find its...
Question Details machine Purchased for $50000 and has a useful life of 3 years. Find its economic life using MARR of 10% a) Year Oerating Cost Salvage Value 1 $10000 0 2 $40000 0 3 $70000 0 b) Year Oerating Cost Salvage Value 1 $10000 $30000 2 $10000 $20000 3 $10000 $0
For the following table, assume a MARR of 12% per year and a useful life for...
For the following table, assume a MARR of 12% per year and a useful life for each alternative of eight years which equals the study period. The rank-order of alternatives from least capital investment to greatest capital investment is Z ·Y? W? X Complete the incremental analysis by selecting the prefer ed altemative. Do nothing" is not an option. $250 $400 $100 Capital investment ? Annual cost savings ? Market value ? PW (12%) 70 100 138 90 50 67...
On July 1, 2019, Crane Company purchased new equipment for $75,000. Its estimated useful life was...
On July 1, 2019, Crane Company purchased new equipment for $75,000. Its estimated useful life was 5 years with a $8,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $
On July 1, 2019, Cullumber Company purchased new equipment for $80,000. Its estimated useful life was...
On July 1, 2019, Cullumber Company purchased new equipment for $80,000. Its estimated useful life was 5 years with a $8,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Calculate the revised annual depreciation
On July 1, 2019, Crane Company purchased new equipment for $75,000. Its estimated useful life was...
On July 1, 2019, Crane Company purchased new equipment for
$75,000. Its estimated useful life was 5 years with a $8,000
salvage value. On December 31, 2022, the company estimated that the
equipment’s remaining useful life was 10 years, with a revised
salvage value of $5,000.
X Your answer is incorrect. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ 2310
On July 1, 2019, Sandhill Co. purchased new equipment for $90,000. Its estimated useful life was...
On July 1, 2019, Sandhill Co. purchased new equipment for $90,000. Its estimated useful life was 8 years with a $18,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ Could you please show working?
Covington Corporation purchased a vibratory finishing machine for $23,000 in year 0. The useful life of...
Covington Corporation purchased a vibratory finishing machine for $23,000 in year 0. The useful life of the machine is 10 years, at the end of which the machine is estimated to have a salvage value of zero. The machine generates net annual revenues of $6,000. The annual operating and maintenance expenses are estimated to be $500. If Covington's MARR is 14%, how many years will it take before this machine becomes profitable? Assume that the cash flows occur continuously throughout...
Suppose FedEx purchased equipment on January 1, 2016, for $44,000. The expected useful life of the...
Suppose FedEx purchased equipment on January 1, 2016, for $44,000. The expected useful life of the equipment is 10 years or 100,000 units of production, and its residual value is $4,000. Under three depreciation methods, the annual depreciation expense and the balance of accumulated depreciation at the end of 2016 and 2017 are: Method A Method B Method C Annual Annual Annual Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated Year Expense Depreciation Expense Depreciation Expense Depreciation 2016 $4,000 $4,000 $8,800 $8,800...
On July 1, 2019, Cullumber Company purchased new equipment for $85,000. Its estimated useful life was 5 years with a $12...
On July 1, 2019, Cullumber Company purchased new equipment for $85,000. Its estimated useful life was 5 years with a $12,000 salvage value. On December 31, 2022, the company estimated that the equipment’s remaining useful life was 10 years, with a revised salvage value of $5,000. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $__________________ Show your work
For the following table, assume a MARR of 12% per year and a useful life for each alternative of eight years which equals the study period. The rank-order of alternatives from least capital investment to greatest capital investment is Z ·Y? W? X Complete the incremental analysis by selecting the prefer ed altemative. Do nothing" is not an option. $250 $400 $100 Capital investment ? Annual cost savings ? Market value ? PW (12%) 70 100 138 90 50 67...
On July 1, 2019, Crane Company purchased new equipment for
$75,000. Its estimated useful life was 5 years with a $8,000
salvage value. On December 31, 2022, the company estimated that the
equipment’s remaining useful life was 10 years, with a revised
salvage value of $5,000.
X Your answer is incorrect. Compute the revised annual depreciation on December 31, 2022. Revised annual depreciation $ 2310
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago