Question

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

0 0
Add a comment Improve this question Transcribed image text
Answer #1

if you find it helpful do rate it !!

Add a comment
Know the answer?
Add Answer to:
Question Details machine Purchased for $50000 and has a useful life of 3 years. Find its...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • please use Excel sheet template to solve the problem Economic Life 13-1 An injection-molding machine has...

    please use Excel sheet template to solve the problem Economic Life 13-1 An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year. The maintenance and operating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life? A В D E F G H 19 13-37 MARR% 21 First Cost 20% 200000 Year Market Value Lost MV Оper Cost Maint. Lost Int. Total MC...

  • machine 1: cost 76,000 salvage value 6,000 useful life 10 years purchased 7/1/16 machine 2: cost...

    machine 1: cost 76,000 salvage value 6,000 useful life 10 years purchased 7/1/16 machine 2: cost 80,000 salvage value 10,000 useful life 8 years purchased 1/1/13 machine 3: cost 78,000 salvage value 6,000 useful life 6 years = 24,000 hours purchased 1/1/18 Problem: In recent years, Hrubeck Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods were selected. Information concerning...

  • Please solve this question its urgent Question 1: 10 Marks Caterpillar purchased a machine with a...

    Please solve this question its urgent Question 1: 10 Marks Caterpillar purchased a machine with a cash price of $425000 on January 1, 2011. It also spent $10000 for installing the machine, $20000 for testing the machine and another $20000 for oil and lubricants. It was estimated that this machine would have a useful life of 8 years and a salvage value of $15000 at that time. The straight-line method of depreciation was considered the most appropriate to use with...

  • A pulpwood-forming machine was purchased and installed 6 years ago for $50000. The declared salvage value...

    A pulpwood-forming machine was purchased and installed 6 years ago for $50000. The declared salvage value was $5000, with a useful life of 10 years. The machine can be replaced with a more efficient model that costs $90000, including installation. The present machine can be sold on the open market for $25000. The cost to remove the old machine is $4000. Which are the relevant costs for the old machine?

  • You purchased a machine five years ago for $100,000. It has a useful life of 10...

    You purchased a machine five years ago for $100,000. It has a useful life of 10 years and you depreciate it using straight line depreciation to an expected salvage value at the end of its life of $5,000. It currently has a salvage value of $20,000. You are considering purchasing a new machine for $175,000. The new machine is expected to have a salvage value of $35,000 at the end of its life. It will cost $8,000 to ship the...

  • The jackson company has invested in a machine that cost $70000, that has a useful life...

    The jackson company has invested in a machine that cost $70000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is being depreciated using the straight line method, based on its useful life. It has a payback period of four years. What Is the simple rate of return on the machine?

  • 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...

  • A machine with a cost of $260,000 has an estimated salvage value of $20,000 and an estimated useful life of 5 years or 1...

    A machine with a cost of $260,000 has an estimated salvage value of $20,000 and an estimated useful life of 5 years or 12000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is amount of depreciation for the second full year, during which the machine was used 4000 hours? Multiple Choice Question 209 A machine with a cost of $260000 has an estimated salvage value of $20000 and depreciation for the second full year, during...

  • For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%

    QUESTION 3For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%Machine AMachine BMachine CFirst cost, $26,5383000010000Annual cost, $/year8,0606,0004,000Salvage value, $4,0005,0001,000Life, years362Answer the below questions:A- AW for machine A=QUESTION 4For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10%Machine AMachine BMachine CFirst cost, $1500021,66710000Annual cost, $/year8,8706,0004,000Salvage value, $4,0005,0001,000Life, years362Answer the below questions:B- AW for machine B=

  • please show how to solve this in Excel. I posted the Excel sheet format it should...

    please show how to solve this in Excel. I posted the Excel sheet format it should look like 13-37 Big-J Construction Company, Inc. is conducting a routine periodic review of existing field equipment. They use a MARR of 20%. This includes a replace- ment evaluation of a paving machine now in use. The machine was purchased 5 years ago for $200,000, The paver's current market value is $65,000, and yearly operating and maintenance costs are as follows. Year, n Operating...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT