Tony works as a salesperson at Franklin Delights, a company that specializes in labor-saving kitchen appliances. When Tony gives
1 answer:
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Answer:
$222,100
Explanation:
Cost = $837,300
Residual value = $84,000
Useful life = 9 years
Now,
Annual straight line depreciation =
Annual straight line depreciation =
Annual straight line depreciation =
Annual straight line depreciation = $83,700
Accumulated depreciation for three years i.e., 2018, 2019 and 2020 would be:
Accumulated depreciation = 3 × $83,700
Accumulated depreciation = $251,100
Book value (at the end of year 2020) = Cost - Accumulated depreciation
Book value (at the end of year 2020) = $837,300 - $251,100
Book value (at the end of year 2020) = $586,200
Revised useful life = 5 years
No. years asset has been used = 3 years
Remaining useful life = 2 years
Revised salvage value = $142,000
Therefore, depreciation expense for the remaining three year would be:
Revised depreciation expense =
Revised depreciation expense =
Revised depreciation expense =
Revised depreciation expense = $222,100
Answer:
Assume: only one of the ware house expansion projects can be implemented and suppose that, if test marketing of the new product is carried out, the advertising campaign also must be conducted and vice versa. Also suppose that the purchase of new equipment cannot be undertaken unless the basic research or the extensive warehouse expansion are implemented.
Formulate the corresponding model for maximizing the net present value subject to the restrictions stated above
Yi (1 if investment alternative is selected, o otherwise)
i = 1, 2, 3, 4, 5, 6
Max Z = $4,000y1 + 6,000y2 + 10,500y3 + 4,000y4 + 8,000y5 + 3,000y6
∴ NPV = 17,500
