Wheeling-Pittsburgh Steel Company installed a new machine at a cost of $ 285000 . The expected salvage
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Question:
Wheeling-Pittsburgh Steel Company installed a new machine at a cost of $285000. The expected salvage value of this machine was $50000 after 10 years. During this 10 years, the annual revenue was $52000.
- Did the company recover the investment at 12% per year return?
- If the annual operating cost was $10000 the first year and increased constantly by $1000 per year, estimate if the AW was negative or positive at interest of 12% per year? Assume the salvage value of the machine ($ 50000) was realized.
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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