An engineer bought an equipment for P500, 000. Other expenses including installation amounted to P30, 000. At the end of its estimated useful life of 10 years, the salvage value will be 10% of the first cost. Using straight-line method of depreciation, what is the book value after 5 years? a. P271, 500.00 b. P281, 500.00 C. P291,500.00 d. P301, 500.00

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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.