# economics

What would be the present value of an item that has a salvage value of \$25,000 at the end of four years? Assume a discount rate of 3.8% for an end-of-year factor. Carry calculations to four decimal places.

\$25,950

\$24,085

\$20,747

\$21,535

1. 👍 0
2. 👎 0
3. 👁 38
asked by ed

## Similar Questions

1. ### finance

how do we end up with salvage value if the item is depreciated the cost of the item either over a period of years or all in one year? How does salvage value work?

asked by jackie on June 15, 2012
2. ### Fundamentals of Cost Analysis (Economic Analysis)

What would be the present value of an item that has a salvage value of \$25,000 at the end of five years? Assume a discount rate of 3.8% for an end-of-year factor. Carry calculations to four decimal places.

asked by D on August 19, 2010
3. ### Economics

Given the following data, use present worth analysis to ﬁnd the best alternative, A,B, or C. A B C Initial cost \$10,000 15,000 \$12,000 Annual beneﬁt 6,000 10,000 5,000 Salvage value 1,000 −2,000 3,000 Useful life 2 years 3

asked by Anonymous on September 30, 2014
4. ### Finance

Calculate the double-declining balance depreciation schedule for a \$2,000 item that will last five years. What is the estimated salvage value?

asked by Heike on August 3, 2012
5. ### Finance

Cooper construction is considering purchasing new technologically advanced equipment. The equipment will cost \$625,000 with a salvage value \$50,000 and the end of 10 years. The equipment is expected to general additional annual

asked by Finance Ron on October 6, 2011
6. ### Accounting

Basic NPV: No Salvage Value or Taxes Carrie Rushing is considering the purchase of a new production machine that costs \$120,000. She has been told to expect decreased annual operating expenses of \$40,000 for four years. At the end

asked by Marie on April 13, 2013
7. ### accounting

On January 1, 2006, Powell Company purchased a building and machinery that have the following useful lives, salvage value, and costs. Building, 25-year estimated useful life, \$4,000,000 cost, \$400,000 salvage value Machinery,

asked by Anonymous on August 2, 2011
8. ### Business

What is the net present value (NPV) of this replacement project? The old equipment has a book value of \$200,000 (year 0) and a current salvage value of \$300,000 (year 0). It is being depreciated on a straight-line basis. It has

asked by Herb on April 11, 2010
9. ### Finance

What's the net present value (NPV) of this replacement project? The old equipment has a book value of \$200,000 (year 0) and a current salvage value of \$300,000 (year 0). It is being depreciated on a straight-line basis. It has

asked by Herb on April 11, 2010
10. ### managerical accounts

(ignore income taxes in this problem)the following data pertain to an investment proposal: cost of the investment \$30,000 Annual cost saving 9,000 estimated salvage value 4,000 life of the project 5 years discount rate 12% Which

asked by Anonymous on March 10, 2016

More Similar Questions