A robotic precision spot welder is purchased for ($380,000.) The installation cost is ($45,000,) which will be
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A robotic precision spot welder is purchased for \($380,000.\) The installation cost is \($45,000,\) which will be expensed.
It will have a useful life of 24,000 hours of operation, after which it will have a salvage value of \($60,000.\) It takes 6 minutes to weld a part, and approximately 24,000 units are expected to be welded in the first year, increasing by 24,000 units each year thereafter. (9.B.2)
a. What is the cost basis?
b. What is the salvage value?
c. How many years of useful life are expected?
d. What is the depreciation each year, using the operating hour method of depreciation?
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Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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