How much new capital must be supplied to make the purchase

Assignment Help Chemical Engineering

Reference no: EM131401170

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: EM131401170

Questions Cloud

Values-attitudes contribute to employee overall : To what extent do you think that values and attitudes contribute to an employee's overall satisfaction with their job? Why or why not? Referring to both examples from the business and political worlds

Why do you think the costs of compliance : Why do you think the costs of compliance with Sarbanes Oxley go down over time?

Interpret the slope of given line : Every year some student scores a perfect 1600. Based on this model, what would that student s residual be for her math score?

Determine the effect of pressure and temperature : Calculate the equilibrium constant and the heat of reaction at 25 °C for this reaction. Is the reaction exothermic, or endothermic?

How much new capital must be supplied to make the purchase : 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?

Business uses accrual-based accounting : Please write three complete and well-composed paragraphs where you use, as an example, a business that operates where you live and discuss whether you think that business uses accrual-based accounting or cash-based accounting and why

Physical evidence to form an evaluation : Why might a customer use physical evidence to form an evaluation? How might a company manage physical evidence?

Determine the weight of the cylinder in pounds : The radius and length of a steel cylinder are 60 mm and 120 mm, respectively. If the mass density of steel is 7850 kg/m3, determine the weight of the cylinder in pounds

Source of energy for organization : When will solar power become the primary source of energy for organization? Support your answer

User Account

All Pages