Haha! Hi Jordon. I'm glad you liked the video. BTW I'm not saying 40 000 grand, I'm saying 40 000 rand. Rand is the currency we use in South Africa (R). Sorry for the confusion, but if I use dollars my students will be even more confused :P
Hi. Could you explain what is going on in the following problem? Thanks. A machine costing $150 000 will last for 35 years, at which time it will have an estimated scrap value of $10 000. If money is worth 4.5% after inflation, how much should a company pay for an alternative machine that will last only 20 years and have no scrap value?
Hi Q Vasta Mwiinga. Don't quite understand why your so upset about the video. SF Method def by investopedia: "A technique for depreciating an asset in bookkeeping records while also generating money to purchase a replacement for the asset when it reaches the end of its useful life. Under the sinking fund method, the business sets aside an amount of money to invest annually so that the principal plus the interest earned in the fund will be enough to replace the asset."
Oe Lekker! I'm so glad you got to enjoy some of our beautiful country! I'm from Johannesburg but the Western Cape is definitely the best of SA. Thanks for the awesome comment!
Omg! R means Rand?south african currency??ha ha.. i assumed it as Rupees our Indian currency for my easy understanding.. Concept well explained.. plz upload video for amortization concept too..thank u from india(Tamilnadu)
Rand not grand lol. And I have to say, I disagree sold my honda after 3 years and lost $400 on it. Bought it for $4100 sold it for $3700. This sinking fund thing is what I've been doing for about a month. By the way if I was to live in South Africa again I'd get a citi golf. I love citi golfs. Just saying. Damn South African currency has devalued so much its insane. I only have a sinking fund for car maintenance not replacement as I'm hoping it will last forever.
It's a simple example that explains what they could potentially be used for and to explain how sinking funds work. It's not meant to be taken in a literal sense.
I liked the video, but yes, the "40 thousand grand" being said every minute was throwing me off ...its either 40 grand, or 40 thousand. Not 40 thousand grand :)
What cost teachers to explain as clear as this!!
Thanks ❤️❤️
Thanks for the lovely compliment...
Its so refreshing to see an explanation in Rands
😂😂
On the real😂
On the real😂
Hehe, sorry for the confusion: our currency in South Africa is Rand (R). So I'm saying rand, not grand. But thanks for the feedback :)
Haha! Hi Jordon. I'm glad you liked the video. BTW I'm not saying 40 000 grand, I'm saying 40 000 rand. Rand is the currency we use in South Africa (R). Sorry for the confusion, but if I use dollars my students will be even more confused :P
Very usefull video 👌👌 love from india 😘😊
Helped a lot!
Thanks
I'm also south african :)
WOW great to see you here
Thank you...i am not of this field , but still it was so easy to understand.....keep posting
Thank you Antriksh! That was incredibly kind!
Great video!
Hi. Could you explain what is going on in the following problem? Thanks. A machine costing $150 000 will last for 35 years, at which time it will have an estimated scrap value of $10 000. If money is worth 4.5% after inflation, how much should a company pay for an alternative machine that will last only 20 years and have no scrap value?
Explain the effects of task on sinking fund
i am from india and thanking you for this valuable guidance😊
thank you sir, however i want more videos as i'm studying 1st sem M.B.A. but i couldn't understood accounts subjects...so can you please help me out?
Hi Q Vasta Mwiinga. Don't quite understand why your so upset about the video.
SF Method def by investopedia: "A technique for depreciating an asset in bookkeeping records while also generating money to purchase a replacement for the asset when it reaches the end of its useful life. Under the sinking fund method, the business sets aside an amount of money to invest annually so that the principal plus the interest earned in the fund will be enough to replace the asset."
Excellent
Thank you so much. Your video was very useful!
thank you, it makes sense how you explained it.
thank u, u put a good example
this helped a lot. thanks.
YAY South African ! Where are you from ?? I was just visiting in Western Cape for over a month. Love the accent. Oh and good video. :)
Oe Lekker! I'm so glad you got to enjoy some of our beautiful country! I'm from Johannesburg but the Western Cape is definitely the best of SA.
Thanks for the awesome comment!
Omg! R means Rand?south african currency??ha ha.. i assumed it as Rupees our Indian currency for my easy understanding.. Concept well explained.. plz upload video for amortization concept too..thank u from india(Tamilnadu)
What type of car can you buy for 50,000 rand?
Rand not grand lol. And I have to say, I disagree sold my honda after 3 years and lost $400 on it. Bought it for $4100 sold it for $3700. This sinking fund thing is what I've been doing for about a month. By the way if I was to live in South Africa again I'd get a citi golf. I love citi golfs. Just saying. Damn South African currency has devalued so much its insane. I only have a sinking fund for car maintenance not replacement as I'm hoping it will last forever.
this really helped thanks!
living in turkey bought a new car for 40.000 liras sold used for 300k
South African ahoy!
Thnk u very much for this video
Thank u
dope shit
thanks a lot
eyyyyyyyy south African:D
Your example is ridiculous. Anyone with enough discipline to use sinking funds isn't going to buy a brand new car!
It's a simple example that explains what they could potentially be used for and to explain how sinking funds work. It's not meant to be taken in a literal sense.
Very slow
dafuq is a rand? dollars yo! no cap
Chinese
I liked the video, but yes, the "40 thousand grand" being said every minute was throwing me off ...its either 40 grand, or 40 thousand. Not 40 thousand grand :)
Nice video..
p.s. one grand = 1000
It's Rand not Grand
It’s obviously rand 😂
Don't quit your day job.
Don't quit your day job.