A company uses the machine hours method to depreciate the machinery in its factory. A machine that cost $120,000 has an estimated residual value of $30,000 at the end of its four-year useful operating life. Usage over the four years is expected to be:What is the depreciation charge for the machine in Year 3?
A: $23,333
B: $31,111
C: $38,889
D: $76,667
A: $23,333
B: $31,111
C: $38,889
D: $76,667
举一反三
- A company purchases a machine with an expected useful life of 6 years for $9,000. After two years of use, management revised the expected useful life to 8 years. The machine is to be depreciated at 30% per annum on the reducing balance basis. A full year's depreciation is charged in the year of purchase, with none in the year of sale. During year 4, it is sold for $3,000. What is the profit or loss on disposal?? $1,000 profit|$840 profit|$87 loss|$1,410 profit
- The cost of a new machine is $250,000. The machine has a five-year life and no salvage value. If the cash flow each year is equal to 25 percent of the cost of the machine, calculate the payback period for the project. A: 2.0 years B: 2.5 years C: 3.0 years D: 4.0 years
- 中国大学MOOC: Decker Company can purchase a new machine at a cost of $104,320 that will save $20,000 per year in cash operating costs. The machine has a 10-year life. Future cash flows are the same every year. What’s the IRR in this example?
- 中国大学MOOC: The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine?
- The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine? A: $4697 B: $3575 C: $4111 D: $3109