Samson bought a new cutting machine for P5,000,000.00. The machine could be sold for P50,000.00 after 20 years of use. What is the Book Value of the machine after 12 years? Compute using a) Straight Line Method and b) any other accepted method.
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- Your plant manager wants you to buy a new lathe for $410000. The lathe should be useful to your company for 8 years at which point you plan to replace. The estimated salvage value at the end of the useful life is $20000. Using straight line depreciation what is the Book value when the asset is sold?A machine was purchased with an amount of P375,000.00 and a modification cost of P100,000.00 after 12 years. It needs regular maintenance that cost P15,850.00 per year. A software renewal cost of P5,501.00 every two years. What is the total capitalized cost that needs to prepare for the acquisition of this asset in pesos given that the interest rate is 0.13 annually?1. A certain building has a salvage value of P 1 million after 50 years. Annual depreciation is Php 2 M. Using the Straight Line Method, how many years after should you sell the building for Php 30 M?
- A company is considering purchasing a machine for $26,500. The machine will generate income of $3,400 per year. Annual depreciation expense would be $1,600. What is the payback period for the new machine? Multiple Choice 3.3 years. 5.3 years. 7.8 years. 16.6 years. 14.7 years.7) purchase a new one or upgrade the existing machine. The existing machine has a remaining life of 5 years and is expected to have a salvage value of $20,000 at the end of its useful life. Operating and maintenance costs have been $25,000 per year. The company uses an MARR of 10% per year compounded annually for making economic decisions. Alternative 1. Á new machine is purchased, and the existing machine is sold at its market value of $50,000. A new machine costs $150,000, has an annual O&M cost of $15,000, and a salvage value of $25,000 at the end of 5 years. Alternative 2. The existing machine is upgraded, and the upgrades are expected to cost $60,000 now. The upgraded machine's salvage value and annual O&M costs are expected to remain the same as that of the existing To meet increased demand for its product, a company can either sell the existing machine and machine. a) Compute the present worth for Alternative 1. b) Compute the present worth for Alternative 2. c) Based on the…The first cost of a certain machine After 8 years it will have a salvage value of P18,000.00. Compute the book value at the end of 3 yrs. by using straight line method:
- The cost of a Tajima embroidery machine is P1.2M and the cost of installation is P50,000. If the salvage value is 10% of the cost of the machine at the end of 10 years, determine the book value at the end of the 3rd year. Use Straight-Line MethodA brand new car costs P500,000 and the salvage value is 10% of the original cost after 20 years. 2.Using SLM, determine the depreciation charge per year if money is worth 12%. 3.Using SLM, determine the book value of this car after 5 years. 4.Find the depreciation charge at the 8th year by SYDM. 5.Using SFM:, determine the depreciation charge per year if money is worth 12%. 6.Using SFM:, determine the book value of this car after 5 years. 6.Using SFM:, determine the book value of this car after 5 years.Mr Dela Cruz is going to buy a new machine for manufacturing its product: Machine A has a first cost of P50,000; annual maintenance P6,000; life 12 years and salvage value of P2,000. Machine B has a first cost of P140,000; annual maintenance P2,500, life 36 years and salvage value P10,000. Money is worth 9%.Compute the present worth cost of B P156,060 P166,080 P186,070 P154,292
- A certain machinery costs P 1,021,778 which will last for 18 years with a salvage value of P 144,755. Money is worth 20%. If the owner decides to sell it after using it for 6 years, what should his price be so that he will not lose or gain financially in the transaction?Finance The first cost of an electric rebar bender is P364,000 and a salvage value of P45,000 at the end of its life for 5 years. Money is worth 5.9% annually. If there is no salvage value and the annual maintenance cost is P16,000, find the annual cost of perpetual service. Express your answer in whole number.A new machine will cost P17000 and will have an estimated salvage value of P11000 in five years. Special tools for the new machine will cost P5000 and will have a resale value of P2500 at the end of five years. Maintenance costs are estimated at P200 per yr. What will be the average annual cost of ownership during the next five years if interest is 6%?