A P 110,000 chemical plant had an estimated life of 6 years and a projected scrap value of 10,000. After 3 years of operation an explosion made it a total loss. How much money would have to be raised to put up a new plant costing P 150,000, if a depreciation reserved have been maintained during its 3 years of operation by sinking fund method at 6% annual compound interest. 100,000.00 104,359.08 14,336.26 45,640.92 195,640.92 50,000.00
A P 110,000 chemical plant had an estimated life of 6 years and a projected scrap value of 10,000. After 3 years of operation an explosion made it a total loss. How much money would have to be raised to put up a new plant costing P 150,000, if a depreciation reserved have been maintained during its 3 years of operation by sinking fund method at 6% annual compound interest. 100,000.00 104,359.08 14,336.26 45,640.92 195,640.92 50,000.00
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 1P
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A P 110,000 chemical plant had an estimated life of 6 years and a projected scrap value of 10,000. After 3 years of operation an explosion made it a total loss. How much money would have to be raised to put up a new plant costing P 150,000, if a depreciation reserved have been maintained during its 3 years of operation by sinking fund method at 6% annual compound interest.
100,000.00
104,359.08
14,336.26
45,640.92
195,640.92
50,000.00
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