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 and its book value after 10 years 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 and its book value after 10 years 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 problem. Help me for the solution

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 and its book value after 10 years using
sinking fund method assuming i = 8%
Ans. d = P14,666.67
= P103,333.33
BV =

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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