A certain newly created company installed a 10,000 KW electric generating plant at a cost of P430 per kW. The amount of the total cost of the plant was sold to the public and were to mature in 15 years. The salvage value is conservatively set at 5% of the first cost, interest bond is 4% and on sinking fund deposit is 3½% What is the sinking fund accumulation after 10 years?
A certain newly created company installed a 10,000 KW electric generating plant at a cost of P430 per kW. The amount of the total cost of the plant was sold to the public and were to mature in 15 years. The salvage value is conservatively set at 5% of the first cost, interest bond is 4% and on sinking fund deposit is 3½% What is the sinking fund accumulation after 10 years?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A certain newly created company installed a 10,000 KW electric generating plant at a cost of P430 per kW. The amount of the total cost of the plant was sold to the public and were to mature in 15 years. The salvage value is conservatively set at 5% of the first cost, interest bond is 4% and on sinking fund deposit is 3½% What is the sinking fund accumulation after 10 years?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education