A consortium of international telecommunication companies contracted for the purchase and installation of fiber optic cable linking Manila and Cebu City at a total cost of P960M. This amount includes freight and installation charges estimated at 10% of the above contract price. If the cable shall be depreciated over a period of 15 years with zero salvage value and money is worth 6% per annum, what is the annual depreciation charge (d)? 3.

A consortium of international telecommunication companies contracted for the purchase and installation of fiber optic cable linking Manila and Cebu City at a total cost of P960M. This amount includes freight and installation charges estimated at 10% of the above contract price. If the cable shall be depreciated over a period of 15 years with zero salvage value and money is worth 6% per annum, what is the annual depreciation charge (d)? 3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A consortium of international telecommunication companies contracted for the purchase and
installation of fiber optic cable linking Manila and Cebu City at a total cost
amount includes freight and installation charges estimated at 10% of the above contract price.
If the cable shall be depreciated over a period of 15 years with zero salvage value and money is
worth 6% per annum, what is the annual depreciation charge (d)?
3.
P960M. This

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