A consortium of international telecommunication companies contracted for the purchase and installment of a fiber optic cable linking two major cities at a total cost of US$880 million. The amount includes freight and installation charges estimated at 10% of the above contract price. If the cable shall be depreciated over a period of 10 years with zero salvage value. What is the book value after 7 years using straight line method? Express your answer in whole number.

A consortium of international telecommunication companies contracted for the purchase and installment of a fiber optic cable linking two major cities at a total cost of US$880 million. The amount includes freight and installation charges estimated at 10% of the above contract price. If the cable shall be depreciated over a period of 10 years with zero salvage value. What is the book value after 7 years using straight line method? Express your answer in whole number.

Traffic and Highway Engineering

5th Edition

ISBN:9781305156241

Author:Garber, Nicholas J.

Publisher:Garber, Nicholas J.

Chapter13: Evaluating Transportation Alternatives

Section: Chapter Questions

Problem 10P

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Concept explainers

Engineering Economics Principles

Engineering economics (engineering economy) is a sub-field of economics to study the use and application of the economic principles in the engineering analysis of decisions along with the systematic evaluation of the advantages of project costs inclusive of engineering design and analysis. It emphasizes microeconomics (a subset of economics) for researching the behavior of people in the decision-making process of assigning and determining multiple alternatives to the usage of some of the restrained resources and merging economic theory and engineering practice in a practical manner. It depicts the logical framework of economics in addition to the analytical application of statistics and mathematics.

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A consortium of international telecommunication companies contracted for the purchase and installment of a fiber optic cable linking two major cities at a total cost of US$880 million. The amount includes freight and installation charges estimated at 10% of
the above contract price. If the cable shall be depreciated over a period of 10 years with zero salvage value. What is the book value after 7 years using straight line method?
Express your answer in whole number.

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