3. An asset that is book-depreciated over a 5-year period by the straight line method has BV3 = $62,000 with a depreciation charge of $26,000 per year. Determine (a) the first cost of the asset and (b) the assumed salvage value. Answer: B = $140,000 and S = $10,000 Subject: ENGINEERING ECONOMICS Lesson: Decisions Under Certainty
3. An asset that is book-depreciated over a 5-year period by the straight line method has BV3 = $62,000 with a depreciation charge of $26,000 per year. Determine (a) the first cost of the asset and (b) the assumed salvage value. Answer: B = $140,000 and S = $10,000 Subject: ENGINEERING ECONOMICS Lesson: Decisions Under Certainty
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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3. An asset that is book-depreciated over a 5-year period by the straight
line method has BV3 = $62,000 with a depreciation charge of $26,000
per year. Determine (a) the first cost of the asset and (b) the assumed
salvage value.
Answer: B = $140,000 and S = $10,000
Subject: ENGINEERING ECONOMICS
Lesson: Decisions Under Certainty
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