A certain machinery costs P 50,000, last 12 years with a salvage value of P 5,000. Money is worth 5%. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction? 2,827.14 20,721.12 3,750.00 15,621.75 34,378.25 29,278.88
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- 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 certain equipment costs P 250,000, lasts 10 years with a salvage value of P25.000 Money is worth 8% If the owner decides to sell it after using for 5 years, what should his price be so that he can recover his investment plus interest? a P222,793.67 24. b. P247,026 с. Р133,113 d P252,638 A company purchased an equipment for P 110,000. It is estimated that it will have a useful life of 10 years, production of 100,000 units and working hours of 100,000. The scrap value of the equipment is P10,000, The company uses the equipment for 7,000 hours and produces 8,000 units on its first year of operation and 8,000 hours and 9,500 units on its second year of operation. Compute the book value of the equipment at the beginning of the third year using. Declining-balance method. a P68,096 25. b. P70,400 c. P 95,000 d. P60,789Choose the correct answer. 1. An oil refinery business ants to purchase a new machine that costs P180.000. Its useful life is five (5) years and it will have zero salvage value. It would offer the following profits to the company -YEAR- -NET PROFIT -68.000 -52,000 -45.000 -37.000 -20,000 If the discount rate is 12%, the present value of the future cash flows is: A) 158,000 B) 165,000 176,000 D) 169,080 2. In above question, the net present value is 3. In above question payback period would be about 3.40 years 4.5 years 5 years D) above 5 years
- A company plans to purchase a computer network control (CNC) machine for $650,000.00. If the company makes a profit from the products of the machine of $265,000.00 at years three and four and the company will be able to sell the machine at year four for $125,000.00 ( salvage value). The company wants to know if they will be able to recover the cost of the machine if the interest rate is 4% ? Provide them with the future value of the transactions to answer their question (if the number is negative it will not pay back, if it is positive it will). SOLVE IN EXCEL2. It is rëquired to select one of the three machines. Which machine should be selected, based on the present worth comparison at an interest rate of 12% per year, if the costs are shown below? Туре X 7,650 1,200 Туре Y 12,900 900 2,000 Туре Z 17,000 750 First cost, $ Maintenance cost,.( $ lyear) Salvage value, ( $) Economic (years) 4,000 12 4What is the capitalized cost of an asset that has a purchasing cost of P500,000.00 and needs a yearly upgrading cost of P8,000.00 for the first 5 years and P10,000.00 after. Also it needs a modification cost of P11,434,000.00 every 10 years. The life of the asset is 20 years with no salvage value. What is the present worth in pesos needed to operate this asset and if money is worth 0.1 per annum?
- Jose and his friend invest in a machine for their business that costs P1,200,000.00. The machine has an economic life of 10 years and has a salvage value of P100,000.00. If money is worth 7%, what is the total depreciation on 5th year. Use the sinking fund method.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 P154,292One member of a company proposed to buy a machine for P200,000. The expected service life is 20 years with no salvage value. What is the capitalized cost if the machine is kept in service indefinitely? The interest rate is 10%.
- Equipment will be purchased at a cost of P250,000. It will have no salvage value. The cash flows are expected to be: P37,000, P48,000, P65,000, P71,000, P73,000, and P53,000 over the life of the equipment. What is the payback period? Group of answer choices 3.43 years 6.00 years 5.25 years 4.40 years59. What is the depreciation factor per year of a hand tractor that is bought at P150, 000.00, if it has no more value at the end of the fifth year? a. 25,000 pesos/year b. 30,000 pesos/year c. 60,000 pesos/year d. 15,000 pesos/year3. Mr. Garcia sold his machine for P20,000 after using it for 6 years. He bought a new machine worth 75,000 with an expected life of 12 years and a salvage value of 2,000. The operating cost is P5,500 per year. The old machine which he bought for P50,000 when new will be useful for 10 years and a junk value of 1,000 but because of appropriate maintenance, it will be useful for another 5 years, no salvage value, with an annual operating cost of twice the new one. If money is worth 12%, was the engineer justified in selling the old machine? Use the ROR method.