Answer:
Machine B has higher Net Fixed Asset Value
Explanation:
Computing the Net Fixed Asset Value using the formula as:
For Machine A
Net Fixed Asset Value (NFA) = Cost - Depreciation
where
Cost is $750,000
Depreciation is computed as:
Depreciation = $750,000 / 15 × 10
= $500,000
So,
NFA of machine A = $750,000 - $500,000
= $250,000
For Machine B
Net Fixed Asset Value (NFA) = Cost - Depreciation
where
Cost is $480,000
Depreciation is computed as:
Depreciation = $480,000 / 24 × 10
= $200,000
So,
NFA of machine A = $480,000 - $200,000
= $280,000
Hence, Machine B has the higher value which is $280,000
