In the evaluation of a project to provide maintenance services, it is estimated It is...
60.1K
Verified Solution
Link Copied!
Question
Accounting
In the evaluation of a project to provide maintenance services, it is estimated It is necessary to invest $270,000 in type A machines and $140.00 in type B machines. While the former have an estimated duration of 12 years, the latter They must be replaced every six years. All machines depreciate in 10 years. Type A machines can sell for $30,000 at the end of their actual useful lives. The unique market information for type B machines is that, with 8 years of antique, others have sold for $20,000. The company must build facilities at a cost of $160,000, which have the possibility of depreciation in 40 years. After 10 years, it is estimated that it could be disassembled and sold for 70% of what they cost. To carry out the project, $22.00 will be invested in working capital. The tax rate is 17% and the return rate is 12%. It is estimated that the the annual income would amount to $150,000 and that the company must assume the following total annual costs:
With this information, calculate for the end of the tenth year a) The scrap value by the accounting method, and the capital recovery of worked