Consider the depreciation calculation that is governed by d (t) = p*P*(1-p) to the power t-1 B(t) = ..... using the value of p = 1 - (F/P) to the power 1/N, ( Where F = Salvage Value P = cost basis) then when t = N, the book value becomes equal to O P to the 1/N power O P O p* P to the N power O F
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A:
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A: *Answer:
Q: the depreciation in the third year?
A: Solution: Given Data Asset price = P 10000 Useful life (n) = 20 years Salvage value = 0
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- Your business buys a delivery van for $28,000. You figure the van will be useful for 5 years and have a value of $5,000 at the end of the 5-year period. What is the (a) basis, (b) useful life, (c) salvage value, (d) depreciable basis, (e) accumulated depreciation at the end of year 2 if you take $4,600 depreciation each year, and (f) the book value at the end of year 2?An asset costs $14300. What declining-balance depreciation rate would result in the scrap value of $5820 after 4 years? (Units of % required for response)Determine the rate of depreciation, the total depreciation, the total depreciation up to the end of the 8th year and the book value at the end of 8 years for an asset that costs P 15,000 new and has an estimated scrap value of P 2,000 at the end of 10 years by (a) Declining balance method (b) Double Declining balance method
- An asset costs $150,000 and has a salvage value of $15,000 after 10 years.What is the depreciation charge for the 4th year, and what is the book value atthe end of the 8th year with(a)Straight-line depreciation?(b)Double declining balance depreciation?An asset with a cost of $100,000 and accumulated depreciation of $80,000 is sold for $8000.What is the amount of the gain or loss on disposal of the plant asset?Depreciation Equipment bought for P 87,000.00 is expected to last for 24 years. If the scrapvalue after 20 years is P 60,000.00. How much is the depreciation for year 12?
- Equipment costing $20,000 that is a MACRS 5-year property isdisposed of during the second year for $15,000. Calculate anydepreciation recapture, ordinary losses, or capital gains associatedwith disposal of the equipment.A certain company make it a policy that for any new equipment the annual depreciation cost should not exceed 10% of the original cost at any time with no salvage value, Determine the length of service life necessary if the depreciation method used is straight line, and SF at 8%You must evaluate the purchase of a spectrometer for the R&D department. The base price is $140,000, and it would cost another $30,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 4 year class and would be sold after 4 years for $60,000. The applicable depreciation rates are 33%, 45%, 15% and 7%. The equipment would require an $8000 increase in net operating working capital. The project would have no effect on revenues, but it should save the firm $50,000 per year before-tax labour costs. The firm's marginal federal-plus state tax rate is 40%. QUESTION:W Whatare the project's annual cash flows in Years 1, 2,3 and 4?
- A company just purchased an intelligent robot, which has a first cost of $284,000. Since the robot is unique in its capabilities, the company expects to be able to sell it in 4 years for $200,000. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. If M&O costs are $100,000 per year, determine the MACRS depreciation in year 3. Assume the recovery period for robots is 5 years and the MARR is 12% when the inflation rate is 4% per year. The MACRS depreciation in year 3 is $ 102240 *You are evaluating two different silicon wafer milling machines. The Techron I costs $270,000, has a 3-year life, and has pretax operating costs of $73,000 per year. The Techron II costs $470,000, has a 5-year life, and has pretax operating costs of $46,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $50,000. If your tax rate is 24 percent and your discount rate is 10 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Techron I Techron IIRequired information A company just purchased an intelligent robot, which has a first cost of $278,000. Since the robot is unique in its capabilities, the company expects to be able to sell it in 4 years for $200,000. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. If M&O costs are $100,000 per year, determine the MACRS depreciation in year 3. Assume the recovery period for robots is 5 years and the MARR is 12% when the inflation rate is 4% per year. The MACRS depreciation in year 3 is $