Question

Question Details machine Purchased for $50000 and has a useful life of 3 years. Find its...

Question Details
machine Purchased for $50000 and has a useful life of 3 years. Find its economic life using MARR of 10%
a) Year Oerating Cost Salvage Value
1 $10000 0
2 $40000 0
3 $70000 0
b) Year Oerating Cost Salvage Value
1 $10000 $30000
2 $10000 $20000

3 $10000 $0

0 0
Add a comment Improve this question Transcribed image text
Answer #1

if you find it helpful do rate it !!

Add a comment
Know the answer?
Add Answer to:
Question Details machine Purchased for $50000 and has a useful life of 3 years. Find its...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • please use Excel sheet template to solve the problem Economic Life 13-1 An injection-molding machine has...

    please use Excel sheet template to solve the problem Economic Life 13-1 An injection-molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year. The maintenance and operating cost is $235,000 with an annual gradient of $75,000. The MARR is 10%. What is the most economic life? A В D E F G H 19 13-37 MARR% 21 First Cost 20% 200000 Year Market Value Lost MV Оper Cost Maint. Lost Int. Total MC...

  • The jackson company has invested in a machine that cost $70000, that has a useful life...

    The jackson company has invested in a machine that cost $70000, that has a useful life of seven years, and that has no salvage value at the end of its useful life. The machine is being depreciated using the straight line method, based on its useful life. It has a payback period of four years. What Is the simple rate of return on the machine?

  • You purchased a machine five years ago for $100,000. It has a useful life of 10...

    You purchased a machine five years ago for $100,000. It has a useful life of 10 years and you depreciate it using straight line depreciation to an expected salvage value at the end of its life of $5,000. It currently has a salvage value of $20,000. You are considering purchasing a new machine for $175,000. The new machine is expected to have a salvage value of $35,000 at the end of its life. It will cost $8,000 to ship the...

  • machine 1: cost 76,000 salvage value 6,000 useful life 10 years purchased 7/1/16 machine 2: cost...

    machine 1: cost 76,000 salvage value 6,000 useful life 10 years purchased 7/1/16 machine 2: cost 80,000 salvage value 10,000 useful life 8 years purchased 1/1/13 machine 3: cost 78,000 salvage value 6,000 useful life 6 years = 24,000 hours purchased 1/1/18 Problem: In recent years, Hrubeck Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods were selected. Information concerning...

  • Please solve this question its urgent Question 1: 10 Marks Caterpillar purchased a machine with a...

    Please solve this question its urgent Question 1: 10 Marks Caterpillar purchased a machine with a cash price of $425000 on January 1, 2011. It also spent $10000 for installing the machine, $20000 for testing the machine and another $20000 for oil and lubricants. It was estimated that this machine would have a useful life of 8 years and a salvage value of $15000 at that time. The straight-line method of depreciation was considered the most appropriate to use with...

  • please show how to solve this in Excel. I posted the Excel sheet format it should...

    please show how to solve this in Excel. I posted the Excel sheet format it should look like 13-37 Big-J Construction Company, Inc. is conducting a routine periodic review of existing field equipment. They use a MARR of 20%. This includes a replace- ment evaluation of a paving machine now in use. The machine was purchased 5 years ago for $200,000, The paver's current market value is $65,000, and yearly operating and maintenance costs are as follows. Year, n Operating...

  • show all steps for thump up no excel 4. (20 points) A machine purchased 3 years...

    show all steps for thump up no excel 4. (20 points) A machine purchased 3 years ago for $140,000 is now too slow to satisfy demand. The machine can be upgraded now for $70,000 (and thus be able to satisfy demand) or be sold to a smaller company for $40,000. After upgrading, the existing machine will have an annual operating cost of $85,000 per year, and an estimated life of 3 years (after upgrading you will keep the machine for...

  • Abdulaziz Co. purchased a machine in 2013 for 50,000 that has a useful life of 5...

    Abdulaziz Co. purchased a machine in 2013 for 50,000 that has a useful life of 5 years with a salvage value of 5,000. Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using: 1- Straight-line Method. 2- Units of Production Method if the machine produces 100,000 units. Here is a table of units produced each year: First Second Third Fourth Fifth 23,000 25,000 - 30,000 22,000 3- Double Declining Balance Method

  • Q1- Abdulaziz Co. purchased a machine in 2013 for 50,000 that has a useful life of...

    Q1- Abdulaziz Co. purchased a machine in 2013 for 50,000 that has a useful life of 5 years with a salvage value of 5,000. Calculate the depreciation expense, accumulated depreciation, book value throughout its useful life using: 1- Straight-line Method. 2- Units of Production Method if the machine produces 100,000 units. Here is a table of units produced each year: First Second Third Fourth Fifth 23,000 25,000 - 30,000 22,000 3- Double Declining Balance Method (2 Marks).

  • SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and...

    SportsWorld purchased a machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. SportsWorld estimates that the machine could produce 750,000 units of product over its useful life. In the first year, 95,000 units were produced. In the second year, production increased to 111,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year? Multiple Choice $49,440 $22,800 $26,640 $36,000 Factor(s) that might...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT