Answered: 2. A machine purchased for P150,000 its…

2. A machine purchased for P150,000 its estimated life is 15 years, after which it will be sold for P40,000 find the book value during the 6" year if the sum of the year digit depreciation is used.

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 1P

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2. A machine purchased for P150,000 its estimated life is 15 years, after which it will be sold for
P40,000 find the book value during the 6" year if the sum of the year digit depreciation is used.

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Your future company has purchased a machine and has entered into a contract that requires the company to pay $2000 each year for the upgrade of machine components at the end of years 6, 7, and 8. In anticipation of the upgrade cost, your company has decided to deposit equal amounts ( X ) at the end of each year for five years in a row in an account that pays i = 6% . The first deposit is made at the end of the first year. What is the value of X?