A granite quarry purchased for P1,600,000 is expected to be exhausted at the end of 4 years. If the resale value of the land is P100,000, what annual income is required to yield an investment rate of 12%? Use a sinking fund rate of 3%.
A granite quarry purchased for P1,600,000 is expected to be exhausted at the end of 4 years. If the resale value of the land is P100,000, what annual income is required to yield an investment rate of 12%? Use a sinking fund rate of 3%.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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A granite quarry purchased for P1,600,000 is expected to be exhausted at the end of 4 years. If the resale value of the land is P100,000, what annual income is required to yield an investment rate of 12%? Use a sinking fund rate of 3%.
A. P550,540.57 ( correct answer )
B. P551,540.57
C. P552,540.57
D. P553,540.57
I need Manual Solution please :) thank you
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