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- The First cost of a passenger bus is ₽800,000. Its estimated life is 4 years with no salvage value.The operating cost per year of 300 days of operation are as follows: Tires, ₽24,000; gasoline, 60liters per day at ₽15 per liter; Oil, ₽80 per day; maintenance and repair, ₽40,000; labor ₽800 perday; miscellaneous expense, ₽18,000; depreciation, sinking fund at 10%. If the averagepassenger fare is ₽3.50 for each passenger one way and expected profit or return is 15%determine the minimum average number of passengers that should be transported each day.Use the Annual Worth method and future worth method. Please also include the solution of finding the annual income.A new machine was bought for $8,500 with a life of eight years and no salvage value. Its annual operating costs were as follows: $7,000, $7,210, 7426.30, ..., $8,609.12 If the MARR=12%, what was the annual equivalent cost of the machine? Choose the correct answer below. A. The annual equivalent cost of the machine was $16,656. B. The annual equivalent cost of the machine was $6,622. C. The annual equivalent cost of the machine was $1,711. D. The annual equivalent cost of the machine was $7,646. E. The annual equivalent cost of the machine was $9,357.A machine costs P840,222 with a scrap value of 10% of the original price at the end of its life of 8 years. What is the annual depreciation by sinking fund at 24%?
- A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BV5=₱42,500 b. Sinking Fund Method if i=9%. BV5=₱50,456.44 c. Declining Balance Method if the depreciation cost is equal to the value of i. BV5=₱49,922.57 d. Double Declining Balance Method. BV5=₱26,214.40 e. Sum of the Years Digit Method. BV5=₱25,454.5 f. Service-Output Method. Assuming that the total service of the machine is 1,497,600 hours and the number of working days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours? BV4=₱79,687.385. The price of a system of jockey pumps is P5,500,000. PLM decided to purchase this system and spent P215,500 for shipping and installation. The equipment will last for 10 years with a salvage value of 3% of its total cost. Determine the following: a. Yearly charge of depreciation using SL method. b.Depreciation charge on the 6thyear, and book value at the end of the 8thyear using SYD method.A new machine was bought for $9,000 with a life of six years and no salvage value. Its annual operating costs were as follows: $7,000, $7,350, $7,717.50, . . . , $8,933.97. If theMARR = 12%, what was the annual equivalent cost of the machine? (a) $7,809 (b) $41,106 (c) $9,998 (d) $2,190 (e) $9,895.
- A heavy equipment costs P500,000.00 and its installation cost P60,000.00. Other miscellaneous cost of equipment (taxes, delivery fees, insurance, etc.) is P40,000.00. The salvage value of the equipment is 12% of its first cost and it's expected that the equipment will retire after 10 years. Using the sinking fund method of depreciation with money that is worth 5%. What is the annual depreciation? What is the book value after 6 years? What is the total depreciation of the equipment after 5 years? What is the 4th year depreciation of the equipment?An equipment costs P45,000 with an economic life of 18 years. Its salvage value is P12,000. Maintenance cost is done every 5 years for P6000. Operating cost is 4000 annually. Money is worth 12%. Compute for its capitalized cost.A cement mixer costs P50,000 with an estimated life of 6 years. Its salvage value is P2,500. Find the depreciation charge on the sixth year using sinking fund method at 8%.
- PLEASE SOLVE THIS TWO PROBLEMS ASAP. THANK YOU! A. A machine costs P388868 with a salvage value of P18029 is expected to last for 28537 hours in 5 years. In the first year of service it was used for 8077 hours. Compute the book value at the end of the first year. B.The cost of a certain asset is P486042 , its life is 5 years and scrap value is P9050 . Find the cost of depreciation after the first year using a constant percentage method.A machine costs P1,500,000. It has a salvage value of P600,000 at the end of its economic life. Using the SYD method, the book value at the end of 2 years is estimated to be P870,000. What is the machine's economic life in years?An industrial drilling machine has an initial cost of P385,000. Determine the following if the salvage value is P60,000 at the end of its life of 10 years. a) the book value after 4 years using double declining balance method. b) the book value at the end of 6 years by declining balance method.
