Homework Answers
c) Using 7-year MACRS,
Cumulative Depreciation for 5 years = Investment x Sum of MACRS % for 5 years
= 5,500 x (14.29% + 24.49% + 17.49% + 12.49% + 8.93%)
= $3,586
d) Annual Depreciation = 5,500 / 8 = 687.5
Book Value = Investment - Cumulative Depreciation = 5,500 - 687.5 x 4 = 2,750
Add Answer to:
do c. and d. only
A global positioning system (GPS) receiver is purchased for $5,500. The...
Engineering Economy Please solve, for A and B please solve them correct! A company purchases an industrial laser fo...
Engineering Economy
Please solve, for A and B please solve them correct!
A company purchases an industrial laser for $176,000. The device has a useful life of 4 years and a salvage value (market value) at the end of those four years of $50,000. The before-tax cash flow is estimated to be $95,000 per year. a. You, of course, suggested applying the 3-year MACRS (GDS) method instead of the straight-line method. Given an effective tax rate of 28%, determine the...
A firm can purchase a centrifugal separator (5-year MACRS property) for $21,000. The estimated salvage value...
A firm can
purchase a centrifugal separator (5-year
MACRS property) for
$21,000.
The estimated
salvage value is
$2,500
after a useful
life of six years. Operating and maintenance
(O&M)
costs for the first year are expected to be
$2,100.
These
O&M
costs are projected to increase by
$500
per year each
year thereafter. The income tax rate is
25%
and the MARR
is
11%
after taxes.
What must the uniform annual benefits be for the purchase of the
centrifugal separator...
A manufacturer of aerospace products purchased five flexible assembly cells for $500,000 each. Delivery and insurance...
A manufacturer of aerospace products purchased five flexible assembly cells for $500,000 each. Delivery and insurance charges were $32,000, and installation of the cells cost another $49,000. a. Determine the cost basis of the five cells. b. What is the class life of the cells? c. What is the MACRS depreciation in year four? d. If the cells are sold to another company for $140,000 each at the end of year six, how much is the recaptured depreciation? Click the...
Your company just bought a new piece of automotive manufacturing equipment (asset class 13.3), which will...
Your company just bought a new piece of automotive manufacturing equipment (asset class 13.3), which will be depreciated under MACRS (GDS) with a recovery period of 10 years. Given a cost basis of $91,000, please answer the following questions: a) How much does the asset depreciate in Year 2? b) What is the cumulative depreciation up to and including Year 5? c) What is the book value at the end of Year 7? d) If the asset is sold in...
Problem 7-9 (algorithmic) Question Help A global positioning system (GPS) receiver is purchased for $6,000. The IRS inf...
Problem 7-9 (algorithmic) Question Help A global positioning system (GPS) receiver is purchased for $6,000. The IRS informs your company that the useful (class) life of the system is eight years. The expected market (salvage) value is $500 at the end of year eight. a. Use the straight line method to calculate depreciation in year two. b. Use the 200% declining balance method to calculate the cumulative depreciation through year three. c. Use the MACRS method to calculate the cumulative...
A global positioning system (GPS) receiver is purchased for $2,000. The IRS informs your company that...
A global positioning system (GPS) receiver is purchased for $2,000. The IRS informs your company that the useful (class) life of the system is seven years. The expected market (salvage) value is $450 at the end of year seven a. Use the straight line method to calculate depreciation in year three. b. Use the 200% declining balance method to calculate the cumulative depreciation through year four. c. Use the MACRS method to calculate the cumulative depreciation through year five. d....
Score: 0 of 1 pt 7 of 9 16 complete) HW Score: 59.72%, 5.38 of 9...
Score: 0 of 1 pt 7 of 9 16 complete) HW Score: 59.72%, 5.38 of 9 pts Problem 7-11 (algorithmic) Question Help Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $175,000. With additional options costing $14,000, the cost basis for depreciation purposes is $189.000. Its MV at the end of six years is estimated as $42.000. Assume it will be depreciated under the GDS: a. What is the...
Engineering Economy
Please solve, for A and B please solve them correct!
A company purchases an industrial laser for $176,000. The device has a useful life of 4 years and a salvage value (market value) at the end of those four years of $50,000. The before-tax cash flow is estimated to be $95,000 per year. a. You, of course, suggested applying the 3-year MACRS (GDS) method instead of the straight-line method. Given an effective tax rate of 28%, determine the...
A firm can
purchase a centrifugal separator (5-year
MACRS property) for
$21,000.
The estimated
salvage value is
$2,500
after a useful
life of six years. Operating and maintenance
(O&M)
costs for the first year are expected to be
$2,100.
These
O&M
costs are projected to increase by
$500
per year each
year thereafter. The income tax rate is
25%
and the MARR
is
11%
after taxes.
What must the uniform annual benefits be for the purchase of the
centrifugal separator...
A manufacturer of aerospace products purchased five flexible assembly cells for $500,000 each. Delivery and insurance charges were $32,000, and installation of the cells cost another $49,000. a. Determine the cost basis of the five cells. b. What is the class life of the cells? c. What is the MACRS depreciation in year four? d. If the cells are sold to another company for $140,000 each at the end of year six, how much is the recaptured depreciation? Click the...
Your company just bought a new piece of automotive manufacturing equipment (asset class 13.3), which will be depreciated under MACRS (GDS) with a recovery period of 10 years. Given a cost basis of $91,000, please answer the following questions: a) How much does the asset depreciate in Year 2? b) What is the cumulative depreciation up to and including Year 5? c) What is the book value at the end of Year 7? d) If the asset is sold in...
Problem 7-9 (algorithmic) Question Help A global positioning system (GPS) receiver is purchased for $6,000. The IRS informs your company that the useful (class) life of the system is eight years. The expected market (salvage) value is $500 at the end of year eight. a. Use the straight line method to calculate depreciation in year two. b. Use the 200% declining balance method to calculate the cumulative depreciation through year three. c. Use the MACRS method to calculate the cumulative...
A global positioning system (GPS) receiver is purchased for $2,000. The IRS informs your company that the useful (class) life of the system is seven years. The expected market (salvage) value is $450 at the end of year seven a. Use the straight line method to calculate depreciation in year three. b. Use the 200% declining balance method to calculate the cumulative depreciation through year four. c. Use the MACRS method to calculate the cumulative depreciation through year five. d....
Score: 0 of 1 pt 7 of 9 16 complete) HW Score: 59.72%, 5.38 of 9 pts Problem 7-11 (algorithmic) Question Help Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $175,000. With additional options costing $14,000, the cost basis for depreciation purposes is $189.000. Its MV at the end of six years is estimated as $42.000. Assume it will be depreciated under the GDS: a. What is the...
Most questions answered within 3 hours.
-
Facebook Marketing benefit: How is this tool useful for
marketing purposes? Identify and explain at least...
asked 8 minutes ago -
What are the five considerations relevant to the
substantive fairness of a dismissal for permanent incapacity?...
asked 8 minutes ago -
Prince Electronics, a manufacturer of consumer electronic
goods, has five distribution centers in different regions of...
asked 10 minutes ago -
1.) For the following general reaction, rate = k[A]2 and k = 1.3
× 10−2 M−1...
asked 14 minutes ago -
In the Enron documentary(Netflix) What ethical issues did you
observe and who was responsible for them?
asked 14 minutes ago -
Many products fail, some of them spectacularly. Why do you
believe the failure rate for new...
asked 13 minutes ago -
An important news announcement is transmitted by radio waves to
people who are 65 km away,...
asked 33 minutes ago -
On June 30, 2021, Rosetta Granite purchased equipment for
$130,000. The estimated useful life of the...
asked 32 minutes ago -
. If you were the CEO of Agricole, would you pursue an
acquisition target in the...
asked 32 minutes ago -
(a) We define standard Gibbs energy change, G0 =
H0 – TS0, what is the relationship...
asked 33 minutes ago -
If the barometric pressure is 107.4 kPa, what is the pressure in
kPa of the gas...
asked 53 minutes ago -
A resonance tube can be used to measure the speed of sound in
air. A tuning...
asked 47 minutes ago