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q5 thank you ACMEusing a MARR of 12.0% wants to determine the before tax economic life for some new equipment and the equivalent cost for
q5 thank you ACMEusing a MARR of 12.0% wants to determine the before tax economic life for some new equipment and the equivalent cost for this life. The equipment can be purchased and installed for $96,000. The salvage value of the equipment is estimated to be $64,000 at the end of one year of use,$42,000 after 2,$22,000 after 3,$6,000 after 4, and $0 after 5 years. First year operating cost is budgeted for $64,000 with expected increases of $8,500 each year starting in year2. Report both the before tax economic life of the equipment and the equivalent uniform cost for this life. A railroad car is acquired for $200, 000 with an estimated salvage value of $16,000 at the end of its planned 11 year useful life. Using thestraight line depreciation method, what is the yearly depreciation in year 4? Usingstraight linedepreciation method, what is the book value at the beginning of year 5? Manufacturing equipment costing350, 000with an estimated salvage value of35,000at the end of the10year planned period of use was installed by BAKER Mfg. Using theMACKSdepreciation method, what is the depreciation amount in year3? Using TheMACRSdepreciation method, what is the book value at the beginning of year4
q5 thank you
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