A factory equipment has an initial cost of Php200,000.00. Its salvage value after 10 years is Php20,000.00. As a percentage of the initial cost, what is the straight line depreciation rate of the equipment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 1P
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A factory equipment has an initial cost of Php200,000.00. Its salvage value after 10 years is Php20,000.00. As a percentage of the initial cost, what is the straight line depreciation rate of the equipment?
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