4. Determine the capitalized cost of a personal computer that worth Php 50,000 with a salvage value of P 10,000, with maintenance cost of Php 1,000 per year for the first 3 years,P 1200 for the next 3 years and Php 1,500 per year thereafter. Php 5,000 repair every 6 years and replaced every 12 years, if money worth 10%.
4. Determine the capitalized cost of a personal computer that worth Php 50,000 with a salvage value of P 10,000, with maintenance cost of Php 1,000 per year for the first 3 years,P 1200 for the next 3 years and Php 1,500 per year thereafter. Php 5,000 repair every 6 years and replaced every 12 years, if money worth 10%.
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
Problem 1PS
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Transcribed Image Text:4.
Determine
the capitalized cost of a personal computer that worth Php 50,000 with a
salvage value of P 10,000, with maintenance cost of Php 1,000 per year for the
first 3 years,P 1200 for the next 3 years and Php 1,500 per year thereafter. Php
5,000 repair every 6 years and replaced every 12 years, if money worth 10%.
5.
A certain company makes it a policy that
for any new piece of equipment, the annual depreciation cost should not exceed 10%
of the First Cost while the Salvage Value is 20% of the First Cost . Determine
the minimum length of service life in years ( n ), necessary, if the
depreciation method used is: SLM, DBM and DDBM.
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