Construction Accounting and Financial Management 3rd. Edition by Steven Peterson | 9780132675055 | 0132675056 | Holooly

Accounting for Business

Construction Accounting and Financial Management

191 SOLVED PROBLEMS

Question: 17.18

Your company is looking at purchasing a front-end loader at a cost of $120,000. The loader can be billed out at $95.00 per hour. It costs $30.00 per hour to operate the front-end loader and $25.00 per hour for the operator. The useful life of the equipment is five years. Using 1,200 billable hours ...

Verified Answer:

The hourly profit on the loader equals the billing...

Question: 12.4

How would the project’s cash requirements change for the construction company in Example 12-3 if it increased the amount of work performed by subcontractors from 53.1% to 74.1% as shown in Table 12-3 ? ...

Verified Answer:

This example may be solved in the same manner that...

Question: 17.20

Your company is looking at investing in one of two investments, Investment A and Investment B. Both investments are considered risky and your company wants to recoup its investment as soon as possible. The cash flows for both investments are shown in Table 17-10 . Using a MARR of 20%, the future ...

Verified Answer:

The project balance for Investment A is calculated...

Question: 17.19

Your company is looking at purchasing a front-end loader at a cost of $120,000. The loader can be billed out at $95.00 per hour. It costs $30.00 per hour to operate the front-end loader and $25.00 per hour for the operator. The useful life of the equipment is five years. The salvage value of the ...

Verified Answer:

The hourly profit on the loader equals the billing...

Question: 17.17

Your company is looking at investing in one of the three investments shown in Table 17-9 . Using the payback period without interest method, which investment would you choose? How would your decision be different if you used the net present value method and a MARR of 20%? Which investment would you ...

Verified Answer:

The payback period for Investment A is two years b...

Question: 17.16

Your company is looking at purchasing a front-end loader at a cost of $120,000. The loader can be billed out at $95.00 per hour. It costs $30.00 per hour to operate the front-end loader and $25.00 per hour for the operator. The useful life of the equipment is five years. Using 1,200 billable hours ...

Verified Answer:

The hourly profit on the loader equals the billing...

Question: 17.15

Your company is looking at purchasing a new hydraulic excavator. The excavator has a purchase price of $120,000, a useful life of five years, and a salvage value of $12,000 at the end of the fifth year. The excavator can be billed out at $95.00 per hour. It costs $30.00 per hour to operate the ...

Verified Answer:

For the purchase of the excavator to be financiall...

Question: 17.14

Your company is looking at purchasing a new front-end loader and has narrowed the choice down to four loaders. The useful life of the loaders is five years. The ...

Verified Answer:

The first step is to rank the alternatives in orde...

Question: 17.12

Your company is looking at purchasing a front-end loader at a cost of $120,000. The loader would have a useful life of five years with a salvage value of $12,000 at the end of the fifth year. The loader can be billed out at $95.00 per hour. It costs $30.00 per hour to operate the front-end loader ...

Verified Answer:

The hourly profit on the loader equals the billing...

Question: 17.11

Your company needs to purchase a dump truck and has narrowed the selection down to two alternatives. The first alternative is to purchase a new dump truck for $65,000. At the end of the seventh year the salvage value of the new dump truck is estimated to be $15,000. The second alternative is to ...

Verified Answer:

The useful life of the new truck is seven years, w...

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