How much new capital must be supplied to make the purchase

Assignment Help Chemical Engineering

Reference no: EM131388117

A piece of equipment originally costing $40,000 was put into use 12 years ago. At the time the equipment was put into use, the service life was estimated to be 20 years and the salvage and scrap value at the end of the service life were assumed to be zero. On this basis, a straight-line depreciation fund was set up. The equipment can now be sold for $10,000, and a more advanced model can be installed for $55 000 Assuming the depreciation fund is available for use, how much new capital must be supplied to make the purchase?

Reference no: EM131388117

Questions Cloud

Briefly summarize the activities and results of the team : Select an article (from Current Business Periodical such as the Wall Street Journal, The Economist, Fortune, etc) that describes an example of an effective team. Briefly summarize the activities and results of this team. What made this team effect..

How does game theory relate to competitive advantage : Explain game theory and how you can apply the concepts in your life and work now and in the future? How does game theory relate to competitive advantage?

Who is liable for the loss either brown or smith : Who is liable for the loss of the sixty cases of corn, Brown or Smith?- After the corn was loaded on a freight car but before the train left the yard, the car was broken open and its contents, including the corn, were stolen. Who is liable for the ..

Annual amount of funding that the endowment : A college's endowment has $1.25 billion in assets. If its investments earn 6% annually, whatis the annual amount of funding that the endowment can generate perpetually?

How much new capital must be supplied to make the purchase : Assuming the depreciation fund is available for use, how much new capital must be supplied to make the purchase?

Events affect output and overall price level : On well-labeled AD-AS diagrams, please show how the following events affect output and overall price level and explain intuitively. What could the federal government and the Federal Reserve do to stabilize the economy hit by a rise in oil price?

What assumptions about reinvestment rates : What assumptions about reinvestment rates are embodied in the NPV, IRR, and MIRR methods?

Develop an amortization schedule for loan : Y bank has offered you a $1,000,000 5-year loan at an interest rate of 12%, requiring equal annual end-of-year payments that include both principal and interest on the unpaid balance. Develop an amortization schedule for this loan.

Explain who bears the risk of loss : Within thirty days after installation, all the purchased machinery, except for a double utility unit, was destroyed by fire through no fault of Clark's. The Adair Company sued Clark to recover the value of the articles destroyed. Explain who bears..

User Account

All Pages