Homework Answers
The Cost price of the machine = $29,000 (four years ago)
The book value of machine - $8,893
The sale price of the machine - $10,000
The Economic Depreciation can be computed as shown below:-
The present value of Economic Depreciation = Purchase Price -
Market Price
= $29,000 - $10,000
= $19,000
Hence, the present value of economic depreciation is $19,000
Add Answer to:
A machine now in use was purchased four years ago at a cost of $29,000. It...
A metal sewing machine was purchased four years ago for $55,000. Suppose that it has a...
A metal sewing machine was purchased four years ago for $55,000. Suppose that it has a depreciation schedule with a five-year ACRS class life at the time of its purchase (four years ago). The metal sewing machine can be sold now for $35,000, or an updated gine can be purchased and installed at a cost of $9,000 (capital investment with three-year depreciable life, straight line, salvage value ). If you keep the machine in service, you will have operating and...
A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand...
A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand of the customers. It can be upgraded now for $82,000 or sold to a smaller company internationally for $44,000. The upgraded machine will have an annual operating cost of $80,000 per year and a $30,000 salvage value in 3 years. If upgraded, the presently owned machine will be retained for only 3 more years, then replaced with a machine to be used in the...
The Darlington Equipment Company purchased a machine 5 years ago at a cost of $100,000. The...
The Darlington Equipment Company purchased a machine 5 years ago at a cost of $100,000. The machine had an expected life of 10 years at the time of purchase, and it is being depreciated by the straight-line method by $10,000 per year. If the machine is not replaced, it can be sold for $10,000 at the end of its useful life. A new machine can be purchased for $160,000, including installation costs. During its 5-year life, it will reduce cash...
A machine was purchased by a company three years ago for $9,000. Estimated salvage value is...
A machine was purchased by a company three years ago for $9,000. Estimated salvage value is $1000 at the end of its 10 years life. The asset is Class 8 (20% CCA rate -- declining balance class, half year rule applicable). Determine the asset’s current book value (i.e., at the beginning of Yr. 4) and the depreciation charge during this year (i.e., Yr. 4) by the declining balance method. Also, find the book value at the end of Yr. 4.
The Darlington Equipment Company purchased a machine 5 years ago at a cost of $90,000. The...
The Darlington Equipment Company purchased a machine 5 years ago at a cost of $90,000. The machine had an expected life of 10 years at the time of purchase, and it is being depreciated by the straight-line method by $9,000 per year. If the machine is not replaced, it can be sold for $5,000 at the end of its useful life. A new machine can be purchased for $180,000, including installation costs. During its 5-year life, it will reduce cash...
A company currently uses a machine that was purchased 2 years ago. This machine is being...
A company currently uses a machine that was purchased 2 years ago. This machine is being depreciated on a straight-line basis and has 6 years of life remaining. Its current book value is $2,100 and it can be sold for S2,500 at this time. Thus, the annual Hepreciation expense is S2,100/6-S350 per year. If the old machine is not replaced, it could be sold for S500 at the end ofits useful life The company is offered a replacement machine which...
show all steps for thump up no excel 4. (20 points) A machine purchased 3 years...
show all steps for thump up
no excel
4. (20 points) A machine purchased 3 years ago for $140,000 is now too slow to satisfy demand. The machine can be upgraded now for $70,000 (and thus be able to satisfy demand) or be sold to a smaller company for $40,000. After upgrading, the existing machine will have an annual operating cost of $85,000 per year, and an estimated life of 3 years (after upgrading you will keep the machine for...
Farris Industrial purchased a machine five years ago at a cost of $164,900. The machine is...
Farris Industrial purchased a machine five years ago at a cost of $164,900. The machine is being depreciated using the straight-line method over eight years. The tax rate is 21 percent and the discount rate is 14 percent. If the machine is sold today for $42,500, what will the aftertax salvage value be? A. $31,794.72 B. $49,268.13 C. $38,439.13 D. $46,560.88 Kustom Cars purchased a fixed asset two years ago for $39,000 and sold it today for $19,000. The assets...
•Original Machine –Initial cost = 100,000 –Annual depreciation = 9,000 –Purchased 5 years ago –Book Value...
•Original Machine –Initial cost = 100,000 –Annual depreciation = 9,000 –Purchased 5 years ago –Book Value = 55,000 –Salvage today = 65,000 –Salvage in 5 years = 10,000 •New Machine –Initial cost = 150,000 –5-year life –Salvage in 5 years = 0 –Cost savings = 50,000 per year –3-year MACRS depreciation •Required return = 10% •Tax rate = 40% Based on this information calculate the cash flows generated by replacing the old machine with the new one and the IRR...
12.22 Four years ago, a firm purchased an industrial batch oven for $23,000. The oven had...
12.22 Four years ago, a firm purchased an industrial batch oven for $23,000. The oven had an estimated life of 10 years with $1,000 salvage value. These original esti- mates are still good. If sold now, the machine will bring in $2,000. If sold at the end of the year, it will bring in $1,500. The market value after the first year has decreased at annual rate of 25%. Annual operating costs for subsequent years are $3,800. A new machine...
A metal sewing machine was purchased four years ago for $55,000. Suppose that it has a depreciation schedule with a five-year ACRS class life at the time of its purchase (four years ago). The metal sewing machine can be sold now for $35,000, or an updated gine can be purchased and installed at a cost of $9,000 (capital investment with three-year depreciable life, straight line, salvage value ). If you keep the machine in service, you will have operating and...
The Darlington Equipment Company purchased a machine 5 years ago at a cost of $90,000. The machine had an expected life of 10 years at the time of purchase, and it is being depreciated by the straight-line method by $9,000 per year. If the machine is not replaced, it can be sold for $5,000 at the end of its useful life. A new machine can be purchased for $180,000, including installation costs. During its 5-year life, it will reduce cash...
A company currently uses a machine that was purchased 2 years ago. This machine is being depreciated on a straight-line basis and has 6 years of life remaining. Its current book value is $2,100 and it can be sold for S2,500 at this time. Thus, the annual Hepreciation expense is S2,100/6-S350 per year. If the old machine is not replaced, it could be sold for S500 at the end ofits useful life The company is offered a replacement machine which...
show all steps for thump up
no excel
4. (20 points) A machine purchased 3 years ago for $140,000 is now too slow to satisfy demand. The machine can be upgraded now for $70,000 (and thus be able to satisfy demand) or be sold to a smaller company for $40,000. After upgrading, the existing machine will have an annual operating cost of $85,000 per year, and an estimated life of 3 years (after upgrading you will keep the machine for...
12.22 Four years ago, a firm purchased an industrial batch oven for $23,000. The oven had an estimated life of 10 years with $1,000 salvage value. These original esti- mates are still good. If sold now, the machine will bring in $2,000. If sold at the end of the year, it will bring in $1,500. The market value after the first year has decreased at annual rate of 25%. Annual operating costs for subsequent years are $3,800. A new machine...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago