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nwhat Txam December 17, 2018 A piece of construction equipment was bought 3 years ago for...
Solve without excel: 9.17 A piece of imaging equipment was purchased two years ago for $50,000...
Solve without excel:
9.17 A piece of imaging equipment was purchased two years ago for $50,000 with an expected useful life of 5 years and a $5000 salvage value. Since its in- stallation performance was poor, it was upgraded for $20,000 one year ago. Increased demand now requires another upgrade for an additional $22,000 so that it can be used for 3 more years. Its new an- nual operating cost will be $27.000 with a $12,000 salvage after the 3...
The management of Mega Builders is considering replacing an old piece of equipment. The following information...
The management of Mega Builders is considering replacing an old piece of equipment. The following information is provided : The equipment it wants to replace(old equipment) was purchased 5 years ago for $1.5m. It had a useful life of 15 years and the company applies straight-line depreciation with zero salvage value. The equipment’s current market value is $1.2m. If the company keeps using it, this piece of equipment will generate annual sales of $200,000 and incur annual cash operating expense...
anyone know ? 3. AirExpress bought a used Boeing 757 plane 5 years ago for $35,000,000....
anyone know ?
3. AirExpress bought a used Boeing 757 plane 5 years ago for $35,000,000. At the time the plane was bought, it was estimated that it would have a service life of 10 years and its salvage value at the end of its service life would be $10,000,000. AirExpress's CFO has recently proposed to replace the old plane with a modern Boeing 777 plane that is expected to last for 15 years. The new plane will cost $75,000,000,...
Another department has selected a new piece of equipment to replace an old piece of equipment...
Another department has selected a new piece of equipment to
replace an old piece of equipment in your plant. You have been
asked to estimate the economic life of the new piece of equipment
and the EAC for that economic life. Additionally, you have been
asked to estimate what the marginal cost is to keep the existing
piece of equipment for an additional year. You have been provided
the following details. Your firm’s interest rate is 9%. The
purchase price...
A company wants to invest $200,000 in a piece of equipment with a 10 year service...
A company wants to invest $200,000 in a piece of equipment with a 10 year service life. Additional operating costs of $5,000 per year are expected. MARR is 12%. The equipment will have a salvage value of $10,000 at the end of service. (a) What is the annual equivalent cost of this investment? (b) If the equipment would produce 10,000 widgets per year, and the company can purchase widgets for $4.50 each, should the company make or buy the widgets?
11.14 A piece of onboard equipment has a first cost of $600,000, an annual cost of...
11.14 A piece of onboard equipment has a first cost of $600,000, an annual cost of $92,000, and a salvage value that decreases to zero by $150,000 each year of the equipment's maximum useful life of 5 years. Assume the company's MARR is 10% per year. (a) Determine the ESL by hand. (b) Use a spreadsheet with a graph indicating the capital recovery, AOC, and total AW per year to determine the ESL
A company bought a piece of machinery for $15,000 with an annual operating cost of $750....
A company bought a piece of machinery for $15,000 with an annual operating cost of $750. There is no maintenance for the first 2 years, but after that maintenance is $500 per year over the 11 year life span of the machine. In year 7, there is an repair cost of $1500 and the equipment has a salvage value of $800. What is the present value of this piece of machinery? i=10%
John Aggie Company is considering the replacement of a piece of equipment with a newer model....
John Aggie Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected: old equipment new equipment purchase price $150,000 $150,000 Accumulated depreciation $100,000 $0 Annual operating costs $70,000 $45,000 If the old equipment is replaced now it can be sold for $15,000 . and the new equipment useful life is five years. the company uses straight-line depreciation with a zero salvage value for all of its assets. what is the...
The initial cost of a piece of construction equipment is $4000 000. It has useful life...
The initial cost of a piece of construction equipment is $4000 000. It has useful life of 10 years. The estimated salvage value of the equipment at the end of useful life is $600 000. Calculate the depreciation charge and book value of the construction equipment using straight-line method and declining balance depreciation method in years 1, 4, 6, 9 and 10.
4. A construction company has the option to purchase a new piece of equipment for a...
4. A construction company has the option to purchase a new piece of equipment for a project and is considering 3 alternatives, as listed in the table below. Which option should they buy, assuming a MARR of 13% and linear depreciation of equipment? Model Initial Cost Economic Life AL в | C $60,000 $70,000 $85,000 3 years 4 years 5 years Operating and maintenance costs $10,000 $8,000 $7,500
Solve without excel:
9.17 A piece of imaging equipment was purchased two years ago for $50,000 with an expected useful life of 5 years and a $5000 salvage value. Since its in- stallation performance was poor, it was upgraded for $20,000 one year ago. Increased demand now requires another upgrade for an additional $22,000 so that it can be used for 3 more years. Its new an- nual operating cost will be $27.000 with a $12,000 salvage after the 3...
anyone know ?
3. AirExpress bought a used Boeing 757 plane 5 years ago for $35,000,000. At the time the plane was bought, it was estimated that it would have a service life of 10 years and its salvage value at the end of its service life would be $10,000,000. AirExpress's CFO has recently proposed to replace the old plane with a modern Boeing 777 plane that is expected to last for 15 years. The new plane will cost $75,000,000,...
Another department has selected a new piece of equipment to
replace an old piece of equipment in your plant. You have been
asked to estimate the economic life of the new piece of equipment
and the EAC for that economic life. Additionally, you have been
asked to estimate what the marginal cost is to keep the existing
piece of equipment for an additional year. You have been provided
the following details. Your firm’s interest rate is 9%. The
purchase price...
11.14 A piece of onboard equipment has a first cost of $600,000, an annual cost of $92,000, and a salvage value that decreases to zero by $150,000 each year of the equipment's maximum useful life of 5 years. Assume the company's MARR is 10% per year. (a) Determine the ESL by hand. (b) Use a spreadsheet with a graph indicating the capital recovery, AOC, and total AW per year to determine the ESL
The initial cost of a piece of construction equipment is $4000 000. It has useful life of 10 years. The estimated salvage value of the equipment at the end of useful life is $600 000. Calculate the depreciation charge and book value of the construction equipment using straight-line method and declining balance depreciation method in years 1, 4, 6, 9 and 10.
4. A construction company has the option to purchase a new piece of equipment for a project and is considering 3 alternatives, as listed in the table below. Which option should they buy, assuming a MARR of 13% and linear depreciation of equipment? Model Initial Cost Economic Life AL в | C $60,000 $70,000 $85,000 3 years 4 years 5 years Operating and maintenance costs $10,000 $8,000 $7,500
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