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1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of P5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BVs=P42,500 b. Sinking Fund Method if i=9%. BV;=P50,456.44

1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of P5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BVs=P42,500 b. Sinking Fund Method if i=9%. BV;=P50,456.44

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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SUBJECT: ENGINEERING ECONOMICS

PLEASE PROVIDE A COMPLETE SOLUTION FOR LETTERS A AND B. THANK YOU.

1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of 5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BVs=P42,500 b. Sinking Fund Method if i=9%. BVs=P50,456.44
Transcribed Image Text:1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of 5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BVs=P42,500 b. Sinking Fund Method if i=9%. BVs=P50,456.44
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