An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the depreciation charge on its 10th year using sinking fund method assuming i 8%. %3D

An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the depreciation charge on its 10th year using sinking fund method assuming i 8%. %3D

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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Question

Engineering Economics

An equipment costing P250, 000 has an estimated life of 15 years with a book
value of P30, 000 at the end of the period. Compute the depreciation charge
on its 10th year using sinking fund method assuming i
a. d = P8, 112.50
b. d = P6, 686.67
C. d= P7, 567.50
d. d = P8, 102.50
8%.

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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