A certain equipment costs P 250,000, lasts 10 years with a salvage value of P25.000. Money is worth 8%. If the owmer decides to sell it after using for 5 years, what should his price be so that he can recover his investment plus interest? a P222,793.67 24. b. P247,026 с. Р133,113 d P252,638 A company purchased an equipment for P 110,000. It is estimated that it will have a useful life of 10 years production of 100,000 units and working hours of 100,000. The scrap value of the equipment is P10,000, The company uses the equipment for 7,000 hours and produces 8,000 units on its first year of operation and 8,000 hours and 9,500 units on its second year of operation. Compute the book value of the equipment at the beginning of the third year using. Declining-balance method. a P68,096 25. b. P70,400 c. P 95,000 d. P60,789
A certain equipment costs P 250,000, lasts 10 years with a salvage value of P25.000. Money is worth 8%. If the owmer decides to sell it after using for 5 years, what should his price be so that he can recover his investment plus interest? a P222,793.67 24. b. P247,026 с. Р133,113 d P252,638 A company purchased an equipment for P 110,000. It is estimated that it will have a useful life of 10 years production of 100,000 units and working hours of 100,000. The scrap value of the equipment is P10,000, The company uses the equipment for 7,000 hours and produces 8,000 units on its first year of operation and 8,000 hours and 9,500 units on its second year of operation. Compute the book value of the equipment at the beginning of the third year using. Declining-balance method. a P68,096 25. b. P70,400 c. P 95,000 d. P60,789
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:A certain equipment costs P 250,000, lasts 10 years with a salvage value of P25.000 Money is worth
8% If the owner decides to sell it after using for 5 years, what should his price be so that he can recover
his investment plus interest?
a P222,793.67
24.
b. P247,026
с. Р133,113
d P252,638
A company purchased an equipment for P 110,000. It is estimated that it will have a useful life of 10 years,
production of 100,000 units and working hours of 100,000. The scrap value of the equipment is P10,000,
The company uses the equipment for 7,000 hours and produces 8,000 units on its first year of operation and
8,000 hours and 9,500 units on its second year of operation.
Compute the book value of the equipment at the beginning of the third year using. Declining-balance method.
a P68,096
25.
b. P70,400
c. P 95,000
d. P60,789
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