Answer:
$5,360
(not given in the options)
Explanation:
Depreciation is the systematic allocation of cost to an asset based on estimates. It is given as
Depreciation = (cost - salvage value)/useful life
When originally purchased, a vehicle costing $23,040 had an estimated useful life of 8 years and an estimated salvage value of $1,600
Annual depreciation = ($23,040 - $1,600)/8
= $2,680
After 4 years
Accumulated depreciation = 4 × $2,680
= $10,720
The net book value then
= $23,040 - $10,720
= $12,320
Since the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value
New depreciation = ($12,320 - $1,600)/2
= $5,360
The depreciation expense in year 5 equals $5,360
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Answer:
The answer is $6680
Explanation:
To calculate the Real GDP we use prices from the base year.
GDP = 100x40 + 80x11 + 20x90 = $6680
Answer:
Land 594,500
Explanation:
We must include all cost necessary to acquire the land and lelave it ready to use.
But, the demolition cost are associate with the old warehouse thus, as thsis asset is being destroyed It will be considered period cost, It will not be capitalized through land.
Acquisition cost 550,000
broker commission 35,000
title insurance 2,500
closing cost <u> 7,000 </u>
Total cost 594,500
Answer:
Therefore, the internal rate of return is lower than the expected return, for this the project must be rejected
Explanation:
Solution
Given that
The cash flow of a project consists of the following amount from year 0 to 3 = −$161,900, $60,800, $62,300, and $75,000
The rate of return required = 13%
Now,
Let the Internal rate of return be y%
Thus,
At internal rate of return, the value of present inflows is the same as the value of present outflows.
So,
Internal rate of return = Value of present inflows = Value of present outflows
=161900 =60800/1.0y +62300/1.0 y ^2 + 75000/ 1,0 y^3
Therefore, y = internal rate of return 10.41%