A machine is bought at P 1,000,000. Yearly, it is maintained at a cost of about P 250,000. It can be sold at a value of P 400,000.00 after its 10-year life. What equivalent yearly sales should be made from the machine to redeem its usefulness. Money is worth 6% (Hint: Capital cost= 0).
A machine is bought at P 1,000,000. Yearly, it is maintained at a cost of about P 250,000. It can be sold at a value of P 400,000.00 after its 10-year life. What equivalent yearly sales should be made from the machine to redeem its usefulness. Money is worth 6% (Hint: Capital cost= 0).
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
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Lesson: Capitalized Cost
A machine is bought at P 1,000,000. Yearly, it is maintained at a cost of about P 250,000. It can be sold at a value of P 400,000.00 after its 10-year life. What equivalent yearly sales should be made from the machine to redeem its usefulness. Money is worth 6% (Hint: Capital cost= 0).
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