Capitalized cost with salvage value

Author: hhch

August undefined, 2024

WebA financial analysis of two types of bridges based on capitalized cost and on the following data is to be made: Bridge A Bridge B Initial Cost P2,000,000 P2,400,000 Cost of renewal P2,000,000 P2,400,000 Salvage value 0 P200,000 Annual maintenance P10,000 None Repairs every 5 years P100,000 P50,000 Life 30 years 40 years If the rate of interest ... WebThe Capitalized cost of a piece of eqpt was found to be P1.5M. The rate of interest was 12% with salvage value of P100k at the end of 10 years. Assuming that the cost of perpetual replacement remains constant, determine the original cost of the eqpt. a. P1,049,237.469 b. P1,490,237.469 c. P1,020,259.877 d. P2,049,237.469.

Solved The capitalized cost of a piece of equipment was

WebUse / -9% per year and f= 3.5% per year. Alternative First cost, $ AOC. $ per year Salvage value, $ Life, years X -15,500,000 -25,000 105,000 00 The capitalized cost for alternative X is $[ The capitalized cost for alternative Y is $[ Select alternative X Y -12,500,000 -10,000 82,000 10 WebView Capitalized cost handout solutions.pdf from FOR 20 at University of Toronto. Capitalized cost handout solutions 1.A certain machine costs $8000; it has an expected lifetime of 10 years and scrap ... 6.A machine that costs $8000 when new has a salvage value of $1000 after 5 years of service. How much could be spent on increasing its … mod theorem

Capitalized cost — AccountingTools ⋆ Accounting Services

WebExample 5.7 The first cost of a certain piece of equipment is $50,000. It will have an annual operating cost of $20,000 and $5,000 salvage value after its 5 year life. At an interest rate of 10% per year, the capitalized cost of the equipment is closest to: WebA company uses a type of truck that costs P2M, with a life of three years and a final salvage value of P320,000. How much could the company afford to pay for another type of truck for the same purpose, whose life is four years with a final salvage value of P400,000, if money is worth 4%?(capitalized cost problem) WebCapitalized costs increase long-lived assets. Expenses increase assets. and more. ... Declining-balance Units-of-production Straight-line Economic-benefits Salvage value … mod therion

Capitalized Cost and Periodic Charge Calculator - Math Celebrity

WebMay 27, 2024 · Capitalized costs include certain financing and construction expenses associated with building such assets. Capitalized costs are those expenses that are … WebDetermine the capitalized cost of a personal computer that worth Php 50,000 with a salvage value of P 10,000, with maintenance cost of Php 1,000 per year for the first 3 … mod the ps3WebThe CDE recommends that LEAs use the straight-line method, with or without salvage value, as this is the simplest and most straightforward depreciation method. Regardless of the depreciation method used, LEAs will need to determine estimated useful lives for their capitalized assets, that is, the number of years over which assets will be ... modther

"WebCapitalized cost is defined as the present worth of a constant annual cost over an infinite analysis period. It can be shown that the factor (P/A,i%, n = infinity) is equal to (1 / i ), … " - Capitalized cost with salvage value

Capitalized cost with salvage value

Answered: A company uses a type of truck which… bartleby

WebYou will learn about Intangible Assets in Intermediate 2 Costs to be Capitalized INITIAL VALUATION of PP&E on the balance sheet ... 2024 Depreciation = (cost- Salvage value)/ Useful Life = (56,000 – 2,000)/ 9 years= $6,000 per year Depreciation expense. 3,000 Accumulated Depreciation 3,000. 4. WebA factory equipment has an initial cost of P200, 000. Its salvage value after ten years is P20, 000. As a percentage of the initial cost, what is the straight-line depreciation rate of the equipment? Answer: C. 9% 12. ... Determine the capitalized cost of an equipment costing P 2M with and annual maintenance of P200, 000 if money is worth 20% ...

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WebOn Jan 1, Year 1, Jing Company purchased office equipment that cost $34,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was … WebThe capitalized cost of a piece of equipment was found to be P145,000.00. The rate of interest used in the computations was 10%, with a salvage value of $10,000.00 at the …

WebCapitalized Cost = PW of Cost for an infinite time period. First compute the Equivalent Annual Cost of the maintenance. For n = ∞, P = A/I ... assume the salvage value is zero. At 12% interest the present worth of the profits is nearest to a. … WebEngineering Civil Engineering A new boiler was installed by a textile plant at a cost of ₱3,000,000 and projected to have a useful life of 15years. At the end of its useful life, it is estimated to have a salvage value of ₱300,000. Determine its capitalized cost if interest is 18% compounded annually. A new boiler was installed by a textile ...

WebConsider the salvage value Salvage Value Salvage value or scrap value is the estimated value of an asset after its useful life is over. For … WebOct 11, 2016 · Alternative X has a first cost of $20,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alternative Y will cost $35,000 with an operating cost of $4,000 per year and a …

WebHow does the Capitalized Cost and Periodic Charge Calculator work? Given an Asset Value (A), a Salvage Value (S) at time (N), a sinking fund rate of (j), an effective rate of …

Webn $12,000 initial cost n $1,200 salvage value n Lease machine n $3,000 annual payment n 15% MARR, 8 year useful life. 2 0 n=8 7-52: Purchase vs. Lease Purchase-Lease 3000 … mod the raftWebJun 18, 2024 · Capitalized costs are not expensed in the period they were incurred but recognized over a period of time via depreciation or amortization. ... ($40,000 historical cost – $5,000 salvage value) / 7 … mod the riftbreakerWebHow does the Capitalized Cost and Periodic Charge Calculator work? Given an Asset Value (A), a Salvage Value (S) at time (N), a sinking fund rate of (j), an effective rate of interest (i), and maintenance expense (M), this calculator solves for periodic charge (H) and capitalized cost (K) This calculator has 6 inputs. mod thermal expansion 1.7.10WebCompute the capitalized cost of a new car worth P800,000 if it is estimated that is requires P20,000 per year to maintain and must be replaced at the same amount with a salvage value of P300,000 after 5 years if the interest rate is 12% per annum. ... A machine cost P80,000 and the salvage value is P20,000 after 10yrs. Calculate the ... mod the sim4 เกาหลีWebAug 26, 2024 · Consider all costs at time of acquisition or construction. Adopt a capitalization policy. Estimate useful life for depreciation based on an asset’s estimated service life. Consider whether the asset will have value at the end of its service life, then base depreciation on cost, less estimated salvage value. mod thermal expansionWebSalvage Value =INR 100,000 – 70,000; Salvage Value = INR 30,000; Therefore, the salvage value of the machinery after its effective life of usage is INR 30,000. Salvage … mod thermal foundationWebThe capitalized cost is the machine is P690,048. 4) An asset was purchased for P1M and retired at the end of 20 years with a salvage value of P40,000. The annual operating cost was P180,000. Find the capitalized cost of the asset based on an interest rate of 12%. (Draw the Cash Flow Diagram) mod thermal foundation 1.12.2