What is the equivalent uniform annual cost

Assignment Help Auditing
Reference no: EM131908711

Problem

Maintenance costs for a truck with an expected 15-year life are estimated to be $1000 each year for the first 10 years, in addition to $5,000 maintenance cost in the year 8 and another $2500 in year 12. If interest rate is 8% per year, what is the equivalent uniform annual cost over the entire 15-year period?

Reference no: EM131908711

Questions Cloud

Sales were on stocks held for more than one year : What amount of loss will he have, assuming both sales were on stocks held for more than one year?
Prepare a differential analysis dated october eleven : Prepare a differential analysis, dated October 11, 2014, to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case.
Make a value chain analysis for the two companies : Make a value chain analysis for the two companies. Comment on the result. what do we need to make an value chain analysis for two companies.
What is meant by the term outsourcing : What is meant by the term outsourcing? What factors, other than dollars, should St. Joseph consider before making the final decision?
What is the equivalent uniform annual cost : Maintenance costs for a truck with an expected 15-year life are estimated. What is the equivalent uniform annual cost over the entire 15-year period?
How should the centers be organized as cost centers : A major software company has established customer service center. How should these centers be organized: as cost centers, profit centers, or investment centers?
Record all the transactions in general journal for macomb : Macomb Wholesale Distributor made the following transactions in year 3. Record all the transactions in general journal form.
Why firms undertake mergers and acquisitions : It was late Sunday night, and Jassir Amor was getting weary. Explain the various reasons why firms undertake mergers and acquisitions.
Compute the materials budget for the year : Magnolia, Inc. manufactures bedding sets. The budgeted production is for 55,000 comforters this year. Compute the materials budget for the year.

Reviews

Write a Review

Auditing Questions & Answers

  Internal audit

Describe and evaluate this type of internal audit. What types of organisation would it be most useful for?

  Accounting professional and ethical standards

Code of Ethics for Professional Accountants

  Prepare swag''s consolidated balance sheet

Prepare Swag's consolidated balance sheet

  Auditing and assurance

Notable operational challenges for 4X Heavy Ltd faced in 2012/2013 were but not limited to

  State of the company’s industry and associated risk factors

Audit partner is concerned about his lack of knowledge of the industry the company is operating in, state of the company's industry and associated risk factors

  Prepare a memo to the audit partner

Prepare a memo to the audit partner on the ‘state of the company's industry' and associated risk factors.

  Adjusting or non- adjusting events

State whether Event is adjusting or non-adjusting event.

  Audit financial data

As a consequence an accounts payable clerk and financial accountant were made redundant from the business during the year.

  Identify principal audit risk

To identify principal audit risk and corresponding audit procedures

  Auditing and assurance

Show the audit inherent risk and rate the risk as low, medium or high.

  National health reform

Explain the role of the following three 'bodies' in National Health Reform

  Prepare a memo on the state of the company''s industry

Prepare a memo on the 'state of the company's industry' and associated risk factors.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd