A machine has a first cost of PhP 800,000 and a salvage value of PhP 50,000 at the end of its life after 10 years. The annual savings for the use of the machine amounts to PhP 124,900.97. If the annual maintenance cost of the machine is PhP 4,000 and the sinking fund to recover depreciation earns 6% compute the rate of return of investment.
A machine has a first cost of PhP 800,000 and a salvage value of PhP 50,000 at the end of its life after 10 years. The annual savings for the use of the machine amounts to PhP 124,900.97. If the annual maintenance cost of the machine is PhP 4,000 and the sinking fund to recover depreciation earns 6% compute the rate of return of investment.
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
Related questions
Question
100%
Pls answer asap. Thank you .. I will rate helpful
Transcribed Image Text:A machine has a first cost of PhP 800,000 and a salvage
value of PhP 50,000 at the end of its life after 10 years.
The annual savings for the use of the machine amounts to
PhP 124,900.97. If the annual maintenance cost of the
machine is PhP 4,000 and the sinking fund to recover
depreciation earns 6% compute the rate of return of
investment.
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 with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education