Introduction
An Incubator is a piece of engineering laboratory equipment that combines the
functionalities of a drying oven and an incubator that fulfills multiple purposes. As a drying
oven, it provides precise temperature control and uniform heat distribution, essential for
various metallurgical and minerals applications. Additionally, it doubles as an incubator,
creating an optimized environment for experiments and research requiring controlled
humidity and temperature conditions. This multifunctionality sets it apart from other
engineering equipment, making it an indispensable asset in any metallurgy and minerals
laboratory.
The key features that set this product apart from traditional drying ovens, including
its cost-effectiveness & cost analysis, extended useful life, salvage value, and its ability
to fulfill multiple purposes.
Product Overview:
The GENLAB Classic Range- Incubator is a versatile piece of equipment designed
to provide controlled heating and drying conditions for various applications. This product
offers a wide temperature range, precise temperature control, and uniform heat
distribution, making it suitable for research laboratories, quality control departments, and
production facilities.
The Gen Lab Classic Range Incubator is a highly specialized engineering
equipment used in various industries, particularly in biotechnology, food processing, and
pharmaceuticals. It is designed to create and maintain a controlled environment for the
cultivation and growth of microorganisms, cell cultures, and tissues. This controlled
environment ensures that the organisms are provided with the necessary conditions,
including temperature, humidity, and carbon dioxide levels, to promote their growth and
development. It plays a crucial role in the production of consistent and high-quality results,
which is vital for research and development in the biotechnology and pharmaceutical
industries.
It is equipped with advanced features that enable digital display for precise
temperature control, ensuring that the conditions required for the growth of organisms are
maintained at a constant level. The inner chamber of the incubator is made from mild
steel coated with aluminium (CLAD) and stainless steel (SS), which is easy to clean and
disinfect, making it ideal for laboratory use. Additionally, the incubator features a built-in
timer for easy operation and monitoring of the incubation process.
Features and Benefits:
1. Temperature Control: The GENLAB Classic Range- Incubator offers accurate
temperature control within a range of [temperature range]. This ensures consistent and
reliable results for your specific applications.
2. Uniform Heat Distribution: The product is equipped with advanced airflow technology,
ensuring even heat distribution throughout the chamber. This eliminates temperature
variations and enhances the efficiency of your processes.
3. Programmable Operation: The GENLAB Classic Range- Incubator comes with
programmable features, allowing you to set temperature profiles and time durations for
optimal process control.
4. Safety Features: The product is equipped with safety mechanisms such as overtemperature protection and door locks to ensure the safety of personnel and samples.
5. Easy Maintenance: The GENLAB Classic Range- Incubator is designed for easy
cleaning and maintenance, minimizing downtime, and maximizing productivity.
Cost Analysis & Cost-Effectiveness:
The GENLAB Classic Range- Incubator stands out in this regard due to its
competitive price point without compromising on quality or functionality. By utilizing
innovative technology and optimizing the manufacturing process, we have managed to
provide a cost-effective solution for metallurgical laboratories. Additionally, the energyefficient features of this equipment help reduce operational costs in the long run.
The total cost of acquiring the GENLAB Classic Range- Incubator is estimated to
be Php 150,000.00. This includes the cost of the equipment, installation, and any
additional accessories required for your specific needs. We offer flexible payment options,
including lease and financing plans, to suit your budgetary requirements.
Useful Life and Salvage Value:
The GENLAB Classic Range- Incubator has been engineered with durability in
mind, utilizing high-quality materials and robust construction. This ensures an extended
useful life, allowing consumers to maximize their investment for an extended period.
Proper maintenance and care further contribute to the longevity of this equipment, making
it a reliable asset in any metallurgy and minerals laboratory.
It has an estimated useful life of 7 years. At the end of its useful life, the equipment
is expected to have a salvage value of Php 25, 000.00. This information can be used for
depreciation calculations and financial planning purposes.
Depreciation Cost Analysis and Discussion:
The process of depreciation analysis helps in accurately stating incurred expenses
from using the asset and compare that to the revenue that the asset brings in. The
following tables show the depreciation cost of the GENLAB Classic Range Incubator
using different methods of depreciation analysis.
Single Line Method:
Year
Depreciation Expense
₱
1
2
3
4
₱17,857.14
₱17,857.14
₱17,857.14
₱17,857.14
Book Value End
150,000.00
₱132,142.86
₱114,285.71
₱96,428.57
₱78,571.43
₱17,857.14
₱17,857.14
₱17,857.14
5
6
7
₱60,714.29
₱42,857.14
₱25,000.00
Declining Balance Method:
Year
1
2
3
4
5
6
7
Book Value
Start
₱
150,000.00
₱
116,100.00
₱
89,861.40
₱
69,552.72
₱
53,833.81
₱
41,667.37
₱
32,250.54
Rate
0.226
0.226
0.226
0.226
0.226
0.226
0.226
Depreciation Expense
₱
33,900.00
₱
26,238.60
₱
20,308.68
₱
15,718.92
₱
12,166.44
₱
9,416.83
₱
7,288.62
Book Value
End
₱
116,100.00
₱
89,861.40
₱
69,552.72
₱
53,833.81
₱
41,667.37
₱
32,250.54
₱
24,961.92
Depreciation
Expense
₱
42,857.14
₱
30,612.24
₱
21,865.89
₱
15,618.49
₱
11,156.07
₱
7,968.62
₱
5,691.87
Book Value
End
₱
107,142.86
₱
76,530.61
₱
54,664.72
₱
39,046.23
₱
27,890.16
₱
19,921.55
₱
14,229.68
Double Declining Balance Method:
Year
1
2
3
4
5
6
7
Book Value
Start
₱
150,000.00
₱
107,142.86
₱
76,530.61
₱
54,664.72
₱
39,046.23
₱
27,890.16
₱
19,921.55
Sum-of-Year Method:
Rate
28.57%
28.57%
28.57%
28.57%
28.57%
28.57%
28.57%
Year
1
2
3
4
5
6
7
Book
Value
Start
Remainin
g Life
₱
125,000.0
0
₱
125,000.0
0
₱
125,000.0
0
₱
125,000.0
0
₱
125,000.0
0
₱
125,000.0
0
₱
125,000.0
0
Depreciatio
n Fraction
Depreciation
Expense
7
7/28
₱
31,250.00
₱
118,750.00
6
6/28
₱
26,785.71
₱
91,964.29
5
5/28
₱
22,321.43
₱
69,642.86
4
4/28
₱
17,857.14
₱
51,785.71
3
3/28
₱
13,392.86
₱
38,392.86
2
2/28
₱
8,928.57
₱
29,464.29
1
28
1/28
₱
4,464.29
₱
25,000.00
Book Value End
₱
150,000.00
Different methods show different depreciation expenses. This is due to having to
consider different approaches in calculating depreciation, such as the useful life, salvage
value, and original cost. However, this allows the study to acquire different choices and
choose one that is fit for the depreciation cost analysis of the product.
Depreciation Schedule:
This section presents the different depreciation expenses resulting from the four
different methods that were used in calculation. The depreciation schedule below shows
the accumulated depreciation expenses of different methods and the end value of the
asset, or the value left after n years.
Depreciation Expenses:
Period
SLM
₱
17,857.14
₱
17,857.14
₱
17,857.14
₱
17,857.14
₱
17,857.14
₱
17,857.14
₱
17,857.14
1
2
3
4
5
6
7
DBM
DDBM
SYM
₱33,900.00
₱42,857.14
₱31,250.00
₱26,238.60
₱30,612.24
₱26,785.71
₱20,308.68
₱21,865.89
₱22,321.43
₱15,718.92
₱15,618.49
₱17,857.14
₱12,166.44
₱11,156.07
₱13,392.86
₱9,416.83
₱7,968.62
₱8,928.57
₱7,288.62
₱5,691.87
₱4,464.29
End Value of the Asset:
Period
0
SLM
₱
150,000.00
1
₱132,142.86
2
₱114,285.71
3
₱96,428.57
4
₱78,571.43
5
₱60,714.29
6
₱42,857.14
7
₱25,000.00
DBM
₱
150,000.00
₱
116,100.00
₱
89,861.40
₱
69,552.72
₱
53,833.81
₱
41,667.37
₱
32,250.54
₱
24,961.92
DDBM
₱
150,000.00
₱
107,142.86
₱
76,530.61
₱
54,664.72
₱
39,046.23
₱
27,890.16
₱
19,921.55
₱
14,229.68
SYM
₱
150,000.00
₱
118,750.00
₱
91,964.29
₱
69,642.86
₱
51,785.71
₱
38,392.86
₱
29,464.29
₱
25,000.00
Conclusion:
Depreciation is an important aspect of investment decision making. It allows for
the accurate valuation of assets, provides tax benefits, enables replacement planning,
and plays a role in cash flow management. There are different methods of depreciation,
and choosing the right method is important for investors.
Depreciation helps in determining the true value of an asset. By reducing the value
of an asset over its useful life, depreciation provides a more accurate picture of the asset's
actual value.
Depreciation helps in capital budgeting: Capital budgeting is the process of
determining which investment projects a company should undertake. Depreciation is an
important factor in this process, as it affects the cash flows associated with an investment
project. By properly estimating the depreciation expense associated with a project,
companies can make more informed decisions about which projects to pursue.
Depreciation is a critical aspect of asset valuation and financial reporting. By
properly recording depreciation, companies can provide a more accurate picture of their
financial health and make more informed decisions about their investments. The
importance of depreciation cannot be overstated, and it is something that every investor,
analyst, and stakeholder should be aware of.
References:
No author. February 2023. ATO Depreciation Rates 2023. Retrieved from
https://www.depreciationrates.net.au/testing
Buford, G. March 2018. What Happens in a Metallurgy Lab. Retrieved from
https://www.locscientific.com/what-happens-in-a-metallurgylab/#:~:text=Metallurgical%20labs%20employ%20teams%20of,a%20broad%20range%
20of%20industries
Fort, C. January 2023. Importance of Depreciation. Retrieved from
https://fastercapital.com/startup-topic/Importance-ofDepreciation.html#:~:text=Depreciation%20is%20an%20important%20aspect,method%
20is%20important%20for%20investors.