An asset is purchased for P500, 000.00. The salvage value in 25 years is P100, 000.00. What is the total depreciation in the first three years using straight– line method? а. Р24, 000.00 b. Р32, 000.00 C. P48, 000.00 d. P16, 000.00

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Engineering Economics Principles

Engineering economics (engineering economy) is a sub-field of economics to study the use and application of the economic principles in the engineering analysis of decisions along with the systematic evaluation of the advantages of project costs inclusive of engineering design and analysis. It emphasizes microeconomics (a subset of economics) for researching the behavior of people in the decision-making process of assigning and determining multiple alternatives to the usage of some of the restrained resources and merging economic theory and engineering practice in a practical manner. It depicts the logical framework of economics in addition to the analytical application of statistics and mathematics.