A building has a salvage value of P1,000,000O at the end of its useful life of 50 years. The straight line depreciation is P2,000,000 each year. Find the first cost of the building P102 million P110 million P101 million P100 million

A building has a salvage value of P1,000,000O at the end of its useful life of 50 years. The straight line depreciation is P2,000,000 each year. Find the first cost of the building P102 million P110 million P101 million P100 million

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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Question

A building has a salvage value of P1,000,000O at the end of its useful life of 50
years. The straight line depreciation is P2,000,000 each year. Find the first cost
of the building
P102 million
P110 million
P101 million
O P100 million

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