Initial Cost of Machine given Depreciation Rate Solution

STEP 0: Pre-Calculation Summary
Formula Used
Initial Cost of the Machine = Amortization Period*Number of Working Hours per Year*Depreciation Rate
Cmachine = PAmortization*Nwh*Mt
This formula uses 4 Variables
Variables Used
Initial Cost of the Machine - Initial Cost of the Machine is the total cost after ordering, buying, acquiring, and installment a machine.
Amortization Period - Amortization Period is the useful time over which the intangible cost of a machine has been spread.
Number of Working Hours per Year - Number of Working Hours per Year is the total number of hours a machine has been used for production processes.
Depreciation Rate - Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.
STEP 1: Convert Input(s) to Base Unit
Amortization Period: 8 --> No Conversion Required
Number of Working Hours per Year: 1200 --> No Conversion Required
Depreciation Rate: 0.1 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
Cmachine = PAmortization*Nwh*Mt --> 8*1200*0.1
Evaluating ... ...
Cmachine = 960
STEP 3: Convert Result to Output's Unit
960 --> No Conversion Required
FINAL ANSWER
960 <-- Initial Cost of the Machine
(Calculation completed in 00.004 seconds)

Credits

Created by Kumar Siddhant
Indian Institute of Information Technology, Design and Manufacturing (IIITDM), Jabalpur
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National Institute of Technology (NIT), Srinagar
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Initial Cost of Machine given Depreciation Rate Formula

Initial Cost of the Machine = Amortization Period*Number of Working Hours per Year*Depreciation Rate
Cmachine = PAmortization*Nwh*Mt

What is Initial Cost of a Machine ?

The Initial Cost of Machine equipment is the summation of the costs of vehicles, the furniture, the purchase price, sales taxes, transportation fees, insurance paid to cover the item during shipment, assembly, installation, and all other costs associated with making the item ready for use.

How to Calculate Initial Cost of Machine given Depreciation Rate?

Initial Cost of Machine given Depreciation Rate calculator uses Initial Cost of the Machine = Amortization Period*Number of Working Hours per Year*Depreciation Rate to calculate the Initial Cost of the Machine, The Initial Cost of Machine given Depreciation Rate is a method to determine the total cost it took to get a machine installed for production when Depreciation Rate is known. Initial Cost of the Machine is denoted by Cmachine symbol.

How to calculate Initial Cost of Machine given Depreciation Rate using this online calculator? To use this online calculator for Initial Cost of Machine given Depreciation Rate, enter Amortization Period (PAmortization), Number of Working Hours per Year (Nwh) & Depreciation Rate (Mt) and hit the calculate button. Here is how the Initial Cost of Machine given Depreciation Rate calculation can be explained with given input values -> 960 = 8*1200*0.1 .

FAQ

What is Initial Cost of Machine given Depreciation Rate?
The Initial Cost of Machine given Depreciation Rate is a method to determine the total cost it took to get a machine installed for production when Depreciation Rate is known and is represented as Cmachine = PAmortization*Nwh*Mt or Initial Cost of the Machine = Amortization Period*Number of Working Hours per Year*Depreciation Rate. Amortization Period is the useful time over which the intangible cost of a machine has been spread, Number of Working Hours per Year is the total number of hours a machine has been used for production processes & Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.
How to calculate Initial Cost of Machine given Depreciation Rate?
The Initial Cost of Machine given Depreciation Rate is a method to determine the total cost it took to get a machine installed for production when Depreciation Rate is known is calculated using Initial Cost of the Machine = Amortization Period*Number of Working Hours per Year*Depreciation Rate. To calculate Initial Cost of Machine given Depreciation Rate, you need Amortization Period (PAmortization), Number of Working Hours per Year (Nwh) & Depreciation Rate (Mt). With our tool, you need to enter the respective value for Amortization Period, Number of Working Hours per Year & Depreciation Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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