Questions from Engineering

Q: Air handling equipment that costs $12,000 has a life

Air handling equipment that costs $12,000 has a life of 7 years with a $2000 salvage value. (a) Calculate the straight line depreciation charge for each year. (b) Write the spreadsheet function to det...

Q: Formulate the linear programming model, develop a spreadsheet, and solve

Formulate the linear programming model, develop a spreadsheet, and solve the capital rationing problem in Example 12.1 with an investment limit of (a) $20 million, as presented, (b) $13 million, and (...

Q: Bristol-Myers-Squibb purchased a tablet-forming machine in

Bristol-Myers-Squibb purchased a tablet-forming machine in 2010 for $750,000. The company planned to use the machine for 10 years and then sell it for $50,000; however, due to rapid obsolescence, it w...

Q: Halcrow Yolles purchased equipment for new highway construction in Manitoba, Canada

Halcrow Yolles purchased equipment for new highway construction in Manitoba, Canada, costing $500,000 Canadian. Estimated salvage at the end of the expected life of 5 years is $50,000. Various accepta...

Q: (a) What is meant by half-year convention?

(a) What is meant by half-year convention? (b) Where does it show up in the MACRS depreciation rate table? What is its effect?

Q: Del Norte Brick Co. is located near the intersection of Texas

Del Norte Brick Co. is located near the intersection of Texas, New Mexico, and Mexico. Improved access to the company’s property is via a small bridge across the Rio Grande. The cost of the bridge was...

Q: A company report stated that a $140,000 asset purchased

A company report stated that a $140,000 asset purchased 3 years ago has a current MACRS book value that is 57.6% of the asset’s basis. (a) Determine the recovery period used. (b) Determine the depreci...

Q: The manager of a plant that manufactures stepper drives knew that MACRS

The manager of a plant that manufactures stepper drives knew that MACRS and DDB were both accelerated depreciation methods, but out of curiosity, he wanted to know which one would provide the faster w...

Q: Bison Gear and Engineering of St Charles, Illinois, makes sensorless

Bison Gear and Engineering of St Charles, Illinois, makes sensorless and brushless dc gear motors suited for foodservice equipment, factory automation, alternative energy systems, and other specialty...

Q: Fairfield Properties owns real property that is MACRS depreciated with n =

Fairfield Properties owns real property that is MACRS depreciated with n = 39 years. They paid $3.4 million for an apartment complex and hope to sell it after 10 years of ownership for 50% more than t...