An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the depreciation charge on its 10th year using sinking fund method assuming i 8%. %3D

An equipment costing P250, 000 has an estimated life of 15 years with a book value of P30, 000 at the end of the period. Compute the depreciation charge on its 10th year using sinking fund method assuming i 8%. %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Engineering Economics

An equipment costing P250, 000 has an estimated life of 15 years with a book
value of P30, 000 at the end of the period. Compute the depreciation charge
on its 10th year using sinking fund method assuming i
a. d = P8, 112.50
b. d = P6, 686.67
C. d= P7, 567.50
d. d = P8, 102.50
8%.

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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