A certain company makes it the policy that for any new piece of equipment the annual depreciation cost should not exceed 10% of the original cost at any time with no salvage value or scrap value. Determine the length of service life necessary if the depreciation method used is a) Straight-line Formula b) Sinking Fund Formula at 8% c) SYD Method

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Question
2
A certain company makes it the policy that for any new piece of equipment the annual
depreciation cost should not exceed 10% of the original cost at any time with no
salvage value or scrap value. Determine the length of service life necessary if the
depreciation method used is
a) Straight-line Formula
b) Sinking Fund Formula at 8%
c) SYD Method
Transcribed Image Text:A certain company makes it the policy that for any new piece of equipment the annual depreciation cost should not exceed 10% of the original cost at any time with no salvage value or scrap value. Determine the length of service life necessary if the depreciation method used is a) Straight-line Formula b) Sinking Fund Formula at 8% c) SYD Method
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