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- Quiz VII Saved 1 A precision lathe costs $11,600 and will cost $28,000 a year to operate and maintain, If the discount rate is 10% and the lathe will last for 4 years. What is the equivalent annual cost of the tool (Enter your answer os positive value. Round your enswer to the neerest cent.) The equivalent antnial cost s 00::02Q1/A Factory owner estimates from his past records that the costs per year for operating machine whose purchase price when new is 45000 $ and its reseal value are given below: C year reseal value operating cost 2 3 1 30000 25000 18000 2000 2200 2400 After 3 years, the operating cost increasing by 5400 $ for each year, the resale value decreases by 2800, what is the best replacement policy?A machine costs P150000 The book value at the end of 2 years is estimated to be P870000. If the salvage value the end of its useful life is P600000. What os the machine's economic life in years using the sum of years method.
- USE MANUAL SOLUTIONA machine has a first cost of ₱100,000 and salvage value of ₱10,000 after 10 years. The annual maintenance of the machine is ₱4,000. If interest rate is 10%, find the annual cost of the machine. A. ₱17,000.34 B. ₱19,647.08 ( ANSWER) C. ₱21,083.56 D. ₱32,074.56Compare the machines below using present worth analysis at i10% per year and find which one should be selected Machine Y First Cost Operating Cost Savage Lfe cycle Machine X 20.000 3.000 3.000 3years Firat Cost 30.000 .000 Annuel Operating Cost Salvage Life cycle 3.000 6 yoarsQUESTION 4 A cloth dryer machine cost RM10,000 and is expected to have useful life of 7 years. It will then have a scrap value of RM2,000. Using the reducing balance method, calculate the book value after 4 years.
- A machine gives annual benefits of 1000$ and have no salvage value with annual maintenance of 750$, if the rate of interest is 9% and number of years are 6 then what will be the present worth? Select one: a. 1209$ b. 1122$ c. 1193$Which machine would you recommend given the following information and interest rate is 10%? New Used Machine Machine P 44,000 Operating 7, 000 First Cost 23, 000 Annual 9,000 Cost Annual repair cost Overhaul every 210 350 2 1,900 years Overhaul every 5 2,500 years Salvage Value Life, years 4,000 3,900 15 8QUESTION 2 The AW method is to be used to select the better alternative of the two machines listed below, at 10% per year. Answer the below questions: Machine R Machine S First cost, $ 250,000 497,732 Annual operating cost, $ per year 40,000 50,000 Salvage value, $ Life, years 20,000 30,000 3. The AW of Machine S-
- Q3: The following table gives the operation cost, maintenance cost and salvage value at the end of every year of a machine whose purchase value is 25,000$. Find the economic life of the machine assuming interest rate, i = 15%. End of Year (n) 1 2 3 4 5 6 7 8 9 10 Cost operation at the end of year ($) 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 Maintenance cost at the end of year ($) 300 400 500 600 700 800 900 1000 1100 1200 Salvage value ate end of the year ($) 9000 8000 7000 6000 5000 4000 3000 2000 1000 50025 A machine costs R20 000. Depreciation will be written off at 20% per annum. Which one of the following amounts shows its carrying amount after 4 years if the reducing balance method is used? A. R9 030 B. R8 192 C. R8 256 D. R8 524If a trenching machine has an estimated life span of 7500 hours and a yearly operating cost of $7,000, what is the hourly cost if the machine is used for 250 hours during the year? Asume this machine is new. 1. $19 2. $28 3. $30 4. $7,000