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16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur cost of money is 10% pa and no other costs are to be considered. a. P126,940 b. P 131,569 c. P 126,825.03 d. P162,825.03

16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur cost of money is 10% pa and no other costs are to be considered. a. P126,940 b. P 131,569 c. P 126,825.03 d. P162,825.03

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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a. P 10,126 b. P 12,131 d. P11,520 с. Р11,825 The depreciation deduction, or cost-recovery allowance, that is allowable in year four (d4) is What is the book value at the end of the fourth year (BV4)? b. P 12,131 18. a. Р 10,126 c. P11,825 d. P17,280
Transcribed Image Text:a. P 10,126 b. P 12,131 d. P11,520 с. Р11,825 The depreciation deduction, or cost-recovery allowance, that is allowable in year four (d4) is What is the book value at the end of the fourth year (BV4)? b. P 12,131 18. a. Р 10,126 c. P11,825 d. P17,280
16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur. cost of money is 10% pa and no other costs are to be considered. a. P126,940 b. P 131,569 c. P 126,825.03 d. P162,825.03 17. A firm purchased and placed in service a new piece of semi-conductor equipment The cost basis for t equipment is P100,000. Determine the depreciation charge permissible in the fourth year. Use Modifi Accelerated Cost Recovery System (MACRS). Class life is six years Activate Windows
Transcribed Image Text:16. An old pump costs P25,000 a year to maintain. What expenditure for a new pump is justified if no maintenan will be required for the first 2 years, P5,000 a year for the next 8 years and P25,000 a year thereafter. Assur. cost of money is 10% pa and no other costs are to be considered. a. P126,940 b. P 131,569 c. P 126,825.03 d. P162,825.03 17. A firm purchased and placed in service a new piece of semi-conductor equipment The cost basis for t equipment is P100,000. Determine the depreciation charge permissible in the fourth year. Use Modifi Accelerated Cost Recovery System (MACRS). Class life is six years Activate Windows
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