An equipment has a first cost of 20,000 and salvage value of 1,000 at the end of 10yrs. Determine the book value after 6yrs using declining balance method
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- i am needing some help with the last part of this problem (the part underneath the header "trade"). i filled out the table with what i got so hopefully it is correct..The first cost of an equipment is 65000 and a salvage value of 3000 at the end of its 6 year life. find the book value after 3 years using the sum of the years method.A mass diagram from sta. 0+00 to sta. 50+00 is plotted as below. The free-haul distance is 1000' The earth excavation cost is $0.12 per yd and the overhaul cost is $0.02 per yd per station. Calculate the Economical Haul Distance. (Round to the nearest foot and fill in the blank with a number only.) 1000 500 -500 -1000 0+00 10+00 20+00 30+00 40+00 50+00 26+00 2+00 4+00 14+00 17+00 33+00 38+00 41+00 Stations 8+00 28+00 Cubic Yard
- What is the book value (to the nearest cent) for the asset in year 1 if straight-line method is used? Cost of $50,000 Asset Useful Life 6 Salvage $4,000 ValueA surface mining company has determined that it needs an additional haul truck to increase ore production by eliminating the idle time incurred by the loading shovel waiting for a haul truck to arrive. The mining company decided to lease a new $600,000 haul truck for 5 years. If the lease payments are set at $9,000 per month, determine the minimum resale value of the haul truck at the end of the lease period for the leasing company to carn a minimum 12.0% Nominal Annual Rate. Assume monthly compounding and that no other fees are appliedEngineering Economics 00011 Please provide a step by step solution using ROR
- Rebecca is moving away from New York City for her new job, so she must buy a car rather than rely on public transit. The new car she is considering will cost $ 18,000 to buy, $ 1,500 per year to insure, and $ 500 per year for maintenance after the 3-year warranty expires. She would keep the car for 7 years when it will have a salvage value of $ 7,000. She has found a 2-year-old car that is the same model for $ 13,000. The 3-year warranty is transferrable, so the annual maintenance cost of $500 starts in year 2. Because the car is less valuable, insurance is $300 per year less than for the new car. After 5 years, the vehicle will be 7 years old and will have the same salvage value of $ 7,000. Rebecca is ignoring costs for fuel, oil, tires and registration, because the two vehicles will have the same costs. If her interest rate is 9%, how much cheaper is the used car (difference of EAC of two vehicles)It costs $50,000 to start a production process. Variable cost is $25 per unit and price is $45 per unit. What is the break-even volume? 2000 units 1000 units 1111 units 2500 unitsDetermine the ESL, at i = 15% per year for equipment that has a first cost of $8,000 and the estimated operating costs and year-end salvage values shown below Year Operation Cost Salvage Value $ per Year $ 1 -1000 2 -1200 3 -1300 4 -2100 1 year 2 years 3 years 4 years 6000 5000 3000 2000
- Complete each problem in excel. Submit your excel worksheet in EXCEL format so I can see how you solved the problems. Please MARK or Outline your answers so I can tell where they are. Create a CASH Flow chart and answer the following questions. The equipment will cost $620,000 and lasts the entire 11 year project. At the end of 11 years, the equipment will be sold for $91,000 in salvage. Operating costs start at $108000 and go up by 3.9% every tear. Benefits begin at $190000 and go up by 6.1% every year. The MARR value is 14% Use a MARR of 14% BUILD the CASH FLOW chart for this project. 3a. Determine the NPW 3b. Determine the AW 3c. Determine the FW 3d. Determine the IRR 3e. Graph the NPW versus MARR 3f. Are we making or losing money at 14% MARR? How can you tell?Economics Last year, a decision was made to keep the same equipment in lieu of buying new equipment. The old equipment's trade-in value last year was $4000 and its value this year is $2000. The operating cost was $700 last year. If bought last year, the new equipment would have cost $13K, the salvage value after 8 years would be $2000, and it would have an annual operating cost of $4000. If bought last year, what would have been the EUAC of the new equipment (in dollars) at 16% interest rate per year? (provide your answer in the box as a negative value if you arrive at costs) What would have been the correct decision? (provide your answer and justification in your pdf file submission)A specialty concrete mixer used in construction was purchased for $300,000 7 years ago. Its annual O&M costs are $105,000. At the end of the 8-year planning horizon, the mixer will have a salvage value of $5,000. If the mixer is replaced, a new mixer will require an initial investment of $375,000 and at the end of the 8-year planning horizon, the new mixer will have a salvage value of $45,000. Its annual O&M cost will be only $40,000 due to newer technology. Use an EUAC measure and a MARR of 15% to see if the concrete mixer should be replaced if the old mixer is sold for its market value of $65,000. Solve, a. Use the cash flow approach (insider’s viewpoint approach). b. Use the opportunity cost approach (outsider’s view point approach).