The asset has FC of 10 000 000 and is expected to last in 10 years with the salvage of 800 000. Using the SOYD what is the depreciation charge during the third year? P1117777.13 O P1338181.82 P1468212.54 P1036823.41
Q: According to Modigliani and Miller, what happens to the cost of equity when the firm increases its…
A: Equity financing is the process of raising money from the investors and give ownership to the equity…
Q: Explain the process of securitisation as carried out by banks and discuss its role in the 2008…
A: Securitization Securitization is the process of grouping or pooling together numerous financial…
Q: to the financial ecision in the fir
A: Step 1 One of a firm's most significant and difficult operations is its financial activities. As a…
Q: Question text Using the information given here, what is the price-earnings ratio for DEF Company? •…
A: Price Earning Ratio refers to a financial ratio that is being used in order to value a stock and…
Q: |Company 2019 Gross $4,250,000 Revenue Company 2019 Gross $1,620,000 Profit Annual Retention Rate…
A: Customer Lifetime value = M(1+d/1+d-r)where,M= Margin d= discount rater = retention ratio CLV =…
Q: 10. Scott bought a $5,975 boat on the installment plan. The agreement included a 20% down payment…
A: In the installment purchase system, part of the price is paid upfront called 'Down payment'. Rest is…
Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…
A: Solution:- When a loan is taken, it can be either be repaid as a lump sum payment or in instalments.…
Q: An investor makes a single deposit of 10,000 into fund A for 10 years which earns a 6% effective…
A: Given, The amount invested is 10,000
Q: When the actual foreign exchange rate for the dollar is greater than the equilibrium rate, the…
A: The above statement is true.
Q: can afford a monthly payment of $1,000. He wants to take out a $60,000 loan at 8% interest rate.…
A: Loans are paid by the equal monthly installments these installments carry the payment for principal…
Q: Hail & Sons operates for 240 days in a year. It has been offered credit terms of 4/30, net 90
A: Cost of non free credit would be the cost of discount given to the customer for doing early payment.
Q: firm has zero debt in its capital structure. Its overall cost of capital is 10%. The firm is…
A: Weighted average cost of capital = (weight of Debt * Cost of debt) + (weight of Equity * Cost of…
Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…
A: First we need to calculate monthly payment by using excel PMT function.The formula is…
Q: O puts; 625 contracts.
A: Hedge refers to the risk management strategy employed to cover the loss in investments by opting for…
Q: A firm has sales of $1,070, net income of $211, net fixed assets of $514, and current assets of…
A: The common-size balance sheet financial statements are the statements that show the company's…
Q: Develop an integer programming model to maximize the NPV in this situation. Use excel to solve this…
A: NPV stands for net present value. It is an important capital budgeting tool that we use to analyze…
Q: Travellers Inn (Millions of Dollars) Cash $ 10 Accounts payable $ 10 Accounts 20 Accruals 15…
A: To determine the WACC of the company first the weights of each component of financing is calculated.…
Q: Clara wants to go on a cruise in 5 years. She plans on putting $25 every week into an account that…
A: Data given: Payment (pmt)= $25 N=5 years nper=5 years *52 = 260 Interest rate = 2.4% (compounded…
Q: If you want $3,000,000 saved by the time you retire in 40 years and you earn 8% interest on your…
A: Amount required $3,000,000 Time is 40 years Interest rate is 8%
Q: When establishing their optimal capital structure, firms should strive to minimize the amount of…
A: The capital structure is said to be optimum capital structure when the firm has selected such a…
Q: ABC Savings and Loan charges a monthly fee of $10 on checking accounts and an overdraft protection…
A: Banks send the monthly account statements in that they send details of money withdrawn and money…
Q: What is the present value of a 20-year annuity of $2,900 per year; i = 6%. Present value %24
A: Present Value (Ordinary Annuity) = C*(((1-(1+i)-n)/i)) Where C = cash flow per period ($2900) i =…
Q: orth 1% compounded semi-annually. 2. Don Solomon wants to set up a scholarship program with his alma…
A: Present value can be found the given period and interest rate and given period of compounding of…
Q: bought a smartphone worth Php72,000 and made a downpayment of Php15,000. The remaining balance must…
A: The periodic payments are paid for the loan and these loans carry the payment of interest and…
Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…
A: First we need to calculate monthly payment by using PMT function in excel. Monthly…
Q: Alfredo wants to know how much he must put in a bank account today to have within 14 years an amount…
A: As per the information provided: Future value of the invested amount = $20,000 Time = 14 years…
Q: The time is cut in half, and the yearly amount you must save is about _________ times as large.…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: (c) If the one-year interest rate on a dollar denominated Treasury bill is 4.5% p.a. and that on a…
A: The interest rate parity indicates that the forward premium or discount on currency exchange should…
Q: What is the effective rate for an interest rate of 12% compounded continuously?
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
Q: Find the compound amount (with interest) on Php50,000 invested for 10 years at 5.25% interest…
A: An amount invested will earn a certain interest each year. There are both simple interest and…
Q: (b) Consider the following two financial assets: (1) an ordinary share that is expected to pay a…
A: The dividend discount model states that we can find out the price of a stock based on the present…
Q: Find the ending balance if the original balance was $425.32 and the following transactions occurred…
A: Each bank gives monthly statements to account holders giving them details of deposit made and…
Q: A common stock offers dividend of $2 next period and its price is $30 next period. Suppose that the…
A: Data given: Dividend next period= $2 Price next period = $30 Covariance of stock and market=24 Av.…
Q: A company with EBIT of $5,000,000 is considering two financing alternatives. The first alternative…
A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, as per authoring…
Q: a) Leases of private land b) Transmissions of private land c) Transfers of private land d) Charges…
A: A lease is an agreement between a lessor and a lessee. The lessor leases his land to the lessee for…
Q: Refer to the table to answer the following questions: Question Answer What was the closing price for…
A: a. The closing Price for Mckesson on July 7, 2016 is 191.20 b. The high for McKesson per share for…
Q: Perseverance Corporation is deciding whether to pursue a restricted or relaxed current investment…
A: The net income is impacted by the working capital and there is impact of working capital on return…
Q: PBB Company has a net operating income of $15 million. Further, the company has $100 million of debt…
A: Value of a company is summation of value of equity and value of debt where value of equity can be…
Q: e Interest Coverage Ratio for pepsi company for year 2
A: Interest coverage ratio show the ability of the company to interest and debt on time without any…
Q: Mia just received her bank statement. The statement lists three deposits and 32 checks that cleared.…
A: Outstanding check are check written and issued to party but not presented before banks for payment…
Q: average cash balance (ro
A: Average cash balance refers to the amount determined by an officer of a company dividing by the…
Q: A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed…
A: The yield on the bond will reflect the rate of return at which the PV of all future cash flows is…
Q: Refer to the table to answer the following questions: Question Answer What was the closing price for…
A: 1) Closing price for McKesson on July 7, 2016 is 191.20 2)High for McKesson per share for the year…
Q: 1. What is the (inflation-adjusted) dollar coupon interest that will be paid in cash at the end of…
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Q: Solve manually using formulas. A perpetuity with annual payments is payable beginning 10 years from…
A: The following information has been provided in the question: Time = 10 yearsFirst payment=50…
Q: COMPOUND INTEREST (a) Find the simple interest on 60,000 for one year at 10%. (b) Find the compound…
A: a) Simple Interest = Principal * Interest rate * Time period = 60,000 * 10% * 1 year = 6,000
Q: Which of the following is not a way that a firm might seek to raise new capital? a. Initial Public…
A: The company needs capital for growth and expansion and there are many ways to raise the capital and…
Q: How incrising minimun wages affect compensation ?
A: Raising the minimum wage would make hiring low-wage workers more expensive. As a result, some…
Q: apitalized cost of an asse
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: our department is choosing between two technology projects to launch in the upcoming quarter.…
A: Net present value is the difference between the present value of cash flow and initial investment of…
ENGINEERING ECONOMY
Step by step
Solved in 3 steps with 1 images
- 3. An asset initially costs P55,000.00 and a salvage value P5,000.00 after 11 years. What is the book value after eight years using straight-line depreciation method?A certain equipment has a first cost of P 12,000 and a salvage value of P 500 at the end of x years. What is the value of x if the annual depreciation is P 1,437.5 using the Straight Line Method?The salvage value of the equipment is P100,000 with a service life of 10 years. The annual depreciation on the 5th year was P81,879 using DBM. What will be its annual depreciation on the 7th year? O P51,645 O P89,305.10 O P81,879 O P65,053
- What is the value of an asset after 8 years of use if it depreciates from its original value of P105,000 to its salvage value of 3% in 12 years using SLM?A lathe machine costs P650,000 and the salvage value of P65,000 after 20 years. 7.Find the annual depreciation at the end of 5 years by DBM 8.Find the annual depreciation at the end of 5 years by DDBM. 9.Find the depreciation charge at the end of 5th year by DBM. 10.Find the depreciation charge at the end of 5th year by DDBM. 11.Find the book value at the end of 5 years by DBM. 12.Find the book value at the end of 5 years by DDBMAn equipment costing P1.8M has a salvage value of P300,000 after 5 years. Calculate the depreciation value (book value) at the end of 3 years using the straight-line method. A. P860,000 B. P750,000 C. P900,000 D. P700,000
- A machine has a first cost of P400,000 and a salvage value of P46,000 17 years from now. If the interest is 10%. Find the annual depreciation(P) using sinking fund method of depreciation.1. An equipment costing P750,000 has a life expectancy of 6 years. Using the sum-of-year’s digit method of depreciation, what must be its salvage value such that its depreciation charge at the fifth year is P52,380.95? A. P400,000 B. P250,000 C. P300,000 D. P200,000A building has a salvage value of P1,000,000O at the end of its useful life of 50 years. The straight line depreciation is P2,000,000 each year. Find the first cost of the building P102 million P110 million P101 million O P100 million
- A machine has an initial cost of P110,634.945 and a salvage value of P22,728.983 after 10 years. What is the book value after 4 using straight line depreciation.An equipment cost P60,000 today and its salvage value is P20,000 after 6 years. Calculate its depreciation at year 2 with 3.45% interest rate.Use Sinking Fund MethodA bulldozer has an initial cost of Php 2,000,000. Its salvage value after 12 years is Php 175,000. As a percentage of the initial cost, what is the straight- line depreciation rate of the equipment? O 7.6041% O 6.6041% O 8.6041% O 5.6041%