A reactor will be purchased for $ 30,000 for use in a chemical process. The life of the reactor is 10 years, and at the end of the 10th year, the scrap value is $ 2000. Calculate the annual depreciation to be reserved for the reactor; a) Declining balance (Matheson) method, b) Sum of the years- digits method, c) If annual interest rate is 10%, sinking -fund method

Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
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A reactor will be purchased for $ 30,000 for use in a chemical process. The life of the reactor is 10 years, and at the end of the 10th year, the scrap value is $ 2000. Calculate the annual depreciation to be reserved for the reactor;
a) Declining balance (Matheson) method,
b) Sum of the years- digits method,
c) If annual interest rate is 10%, sinking -fund method

A reactor will be purchased for $ 30,000 for use in a chemical process. The life of
Q.4
the reactor is 10 years, and at the end of the 10th year, the scrap value is $ 2000. Calculate the
annual depreciation to be reserved for the reactor;
3. a) Declining balance (Matheson) method,
4. b) Sum of the years- digits method,
5. c) If annual interest rate is 10%, sinking -fund method
Transcribed Image Text:A reactor will be purchased for $ 30,000 for use in a chemical process. The life of Q.4 the reactor is 10 years, and at the end of the 10th year, the scrap value is $ 2000. Calculate the annual depreciation to be reserved for the reactor; 3. a) Declining balance (Matheson) method, 4. b) Sum of the years- digits method, 5. c) If annual interest rate is 10%, sinking -fund method
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