Peller machine losses 10% of its value each year. The machine costs P 2,000 originally. Find the book value at the end of 5 years. a. P1,312.20 b. P1,1180.98 c. P1,620.00 d. P1,458.00
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Peller machine losses 10% of its value each year. The machine costs P 2,000 originally. Find the book value at the end of 5 years.
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- Most businesses replace their computers every two to three years. Assume that a computer costs $2,000 and that it fully depreciates in 3 years, at which point it has no resale value and is thrown away. Suppose the computer did not fully depreciate but still had a $250 value at the time it was replaced. What is the minimum annual cash flow that a computer must generate to be worth the purchase? The minimum annual cash flow must be at least $Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni's owners. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over 3 years. Prepare the balance sheet just after it gets the bank loan. (Omlt the "$" slgn In your response.) a- 1. Assets Liabilities & Shareholders' Equity Cash Bank loan Computers Shareholders' equity Total TotalYou are considering purchasing a dump truck.The truck will cost $75,000 and have operating andmaintenance costs that start at $18,000 the first yearand increases by $2,000 per year. Assume that thesalvage value at the end of five years is $22,000 andinterest rate is 12%. What is the equivalent annualcost of owning and operating the truck?
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- 13,000 6. The Imperial Chemical Company is considering purchasing a chemical analysis machine worth $13,000. Although the purchase of this machine will not produce any increase in sales revenues, it will result in a reduction of labour costs. In order to operate the machine properly, it must be calibrated each year. The machine has an expected life of 6 years, after which it will have no salvage value. The following table summarizes the annual savings in labour cost and the annual maintenance costs in calibration over 6 years: Year (n) Net Cash Flow ($) 0 Costs ($) Savings ($) -13,000 1 2 3 4 2,300 6,000 3,700 2,300 7,000 4,700 2,300 9,000 6,700 2,300 9,000 6,700 5 2,300 9,000 6,700 6 2,300 9,000 6,700 Find the internal rate of return for this project. [6]Bob is 60 years old, single and a member of the Defined Benefits division at UniSuper (Australia‘s largest corporate superfund with100,000+ members and $19 billion in funds under management).He is now assessing his financial position and considering retiring in 5 years. UniSuper account is his main resource to support his post-retirement living，in addition to a very small amount of part pension from the government given the current legislation doesn’t change and he passes the asset test. He has approached you, an internal financial advisor at UniSuper, to get a better understanding of the risks thathe faces until he retires and in the years after retirement. Please discuss three major risks in his situation by clearly identifying each risk and explaining ameasure of such risk if it is quantifiable and/or discussing briefly if it is not quantifiable.Michael Wittry has been investing in his Roth IRA retirement account for 24 years. Five years ago, his account was worth $215,670. After losing 1/3 of its original value, it then gained ½ of its new value back. What is the current value of his Roth IRA?
- On September 1, 2021, Middleton Corp. lends cash and accepts a $1,700 note receivable that offers 7% interest and is due in six months. How much interest revenue will Middleton Corp. report during 2021.Jumbo Company uses 1,100 units of an particular item each year. Carrying the item in inventory costs $200 per unit per year. It costs $150 for each order of the chemical. The firm uses the item at a constant rate each year. Calculate the Economic Order Quantity AND Use the data from problem above and assume that Jumbo Company operates 250 days per year. Also assume that its total usage is 1,100 units per year. There is a lead time of 2 days and Jumbo desires to keep a safety stock of 4 units. Calculate the reorder pointPlease view the following video before answering this question. Video Solution: 04.02-PRO14 Click here to access the TVM Factor Table Calculator Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $37,000. It has an expected life of 7 years at which time its salvage value will be $5,000. Operating and maintenance expenses are estimated to be $2,000 per year. If the filtration system is not purchased, Aerotron Electronics will have to pay Bay City $12,000 per year for water purification. If the system is purchased, no water purification from Bay City will be needed. Aerotron Electronics must borrow 1/2 of the purchase price, but they cannot start repaying the loan for 2 years. The bank has agreed to 3 equal annual payments, with the 1st payment due at the end of year 2. The loan interest rate is 9.5 % compounded annually. Aerotron Electronics' MARR is 10.0% compounded annually. Part a 1 What is the present…