1. A cooling water pumping station at a manufacturing plant in Iligan City costs P30,000,000 to construct, and it Is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. If the cooling water pumping station in Problem 1 will be book-depreciated to zero over a recovery perlod of 30 years, calculate dip manually using the double declining balance method

1. A cooling water pumping station at a manufacturing plant in Iligan City costs P30,000,000 to construct, and it Is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. If the cooling water pumping station in Problem 1 will be book-depreciated to zero over a recovery perlod of 30 years, calculate dip manually using the double declining balance method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A cooling water pumping station at a manufacturing plant in Iligan City costs 30,000,000 php to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. Calculate the annual depreciation charge for year 10 (d10) using: a. Straight Line Method b. Declining Balance Method c. Double declining balance method d. Sinking Fund method at 10% e. Sum of the year's digits method 2. If the cooling water pumping station in Problem 1 will be book-depreciated to zero over a recovery period of 30 years, calculate year 10 (d10) manually using the double declining balance method.
Give typing answer with explanation and conclusion A new production system for a factory is to be purchased and installed for $154982. This system will save approximately 300,000 kWh of electric power each year for a 6-year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 15% per year, and the salvage value of the system will be $9668 at year 6. Using the PW method to analyzes if this investment is economically justified A- calculate the PW of the above investment and insert the result below.
A cooling water pumping station at a manufacturing plant in N City cost $30,000,000 to construct, and it is projected to have a 25-year life with an estimated salvage value of 10% of the construction cost. If the cooling water pumping station will be book-depreciated to zero over a recovery period pf 30 years, calculate d_10 using the double declining balance method.
1. A remotely situated fuel cell has an installed cost of BD2,000 and will reduce the existing expense by BD350 per year for eight years. The company's MARR is 10% per year. a) What is the minimum salvage value after eight years that makes the fuel cell worth purchasing? b) What is the fuel cell's IRR if the salvage value is negligible?
A new production system for a factory is to be purchased and installed for $135331 . This system will save approximately 300,000kWh of electric power each year for a 6-year period. Assume the cost of electricity is $0.10 per kWh , and factory MARR is 15% per year, and the salvage value of the system will be $8662 at year 6 . Using the PW method to analyzes if this investment is economically justified A- calculate the PW of the above investment and insert the result below. _______________________
Crane's Custom Construction Company is considering three new projects, each requiring an equipment investment of $27,280. Each project will last for 3 years and produce the following net annual cash flows. Year AA BB CC 1 $8,680 $12,400 $16,120 2 11,160 12,400 14,880 3 14,880 12,400 13,640 Total $34,720 $37,200 $44,640 The equipment's salvage value is zero, and Crane uses straight-line depreciation. Crane will not accept any project with a cash payback period over 2 years. Crane's required rate of return is 12%. Click here to view PV table. (a) Compute each project's payback period. (Round answers to 2 decimal places, e.g. 15.25.) AA BB BB years years CC years
A new production system for a factory is to be purchased and installed for $135331. This system will save approximately 300,000 kWh of electric power each year for a 6-year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 15% per year, and the salvage value of the system will be $8662 at year 6. Using the PW method to analyzes if this investment is economically justified A- calculate the PW of the above investment and insert the result below.
Two methods can be used to produce expansion anchors. Method A costs $ 70, 000 initially and will have a $15,000 salvage value after 3 years. The operating cost with this method will be $36,000 in year 1, increasing by $3200 each year. Method B will have a first cost of $ 116,000, an operating cost of $10000 in year 1, increasing by $10000 each year, and a $46, 000 salvage value after its 3 year life. At an interest rate of 8% per year, which method should be used on the basis of a present worth analysis?
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Two methods can be used to produce expansion anchors. Method A costs $70,000 initially and will have a $11,000 salvage value after 3 years. The operating cost with this method will be $22,000 in year 1, increasing by $2600 each year. Method B will have a first cost of $123,000, an operating cost of $8000 in year 1, increasing by $6500 each year, and a $33,000 salvage value after its 3-year life. At an interest rate of 15% per year, which method should be used on the basis of a present worth analysis? The present worth for method A is $ The present worth for method B is $[ Method (Click to select) is used to produce expansion anchors.
ChemCo is considering installing a new system for the production of composite materials that costs $215,000. The expected life of the system is 11 years and the salvage value is computed using the declining balance method with a depreciation rate of 15%. The expected annual savings will be $33,000. The MARR is 10%. (a) Calculate the salvage value of the system. (b) Graph the Present Worth VS Changes in the Annual Savings by varying the annual savings by + 15% in steps of 5%. Use Excel. (c) Calculate the break even Annual Savings value.
A project has an initial investment of $45,000. This project needs an annual spending of $6,000 to generate an annual revenue of $18,000 for six years. Moreover, the project is expected to return $12,000 as a salvage value at the EOY 6. Calculate the AW using MARR of 10%