A plant erected to manufacture sock has a first cost of P10,000,000.00 with an estimated salvage value of P1000,000.00 at the end of 25years. Find its appraised value to the nearest P100 by the sinking fund method assuming an interest rate of 6% at the end of 10 years and 20years.
A plant erected to manufacture sock has a first cost of P10,000,000.00 with an estimated salvage value of P1000,000.00 at the end of 25years. Find its appraised value to the nearest P100 by the sinking fund method assuming an interest rate of 6% at the end of 10 years and 20years.
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 2P
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A plant erected to manufacture sock has a first cost of P10,000,000.00 with an estimated salvage value of P1000,000.00 at the end of 25years. Find its appraised value to the nearest P100 by the sinking fund method assuming an interest rate of 6% at the end of 10 years and 20years.
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