An Industrial Plant bought a generator set for 90000, other expenses including installation amounted to 10000. The generator is to have 17 years with a salvage value at the end of life of 5000. Dtermine the book value at the end of 12 years by the following method; Declining balance method A. 10,118 B. 12,068 C. 14,393 D. 8,483 Sinking fund method at 12% A. 45,529 B. 59,860 C. 53,100 D. 65,896
An Industrial Plant bought a generator set for 90000, other expenses including installation amounted to 10000. The generator is to have 17 years with a salvage value at the end of life of 5000. Dtermine the book value at the end of 12 years by the following method; Declining balance method A. 10,118 B. 12,068 C. 14,393 D. 8,483 Sinking fund method at 12% A. 45,529 B. 59,860 C. 53,100 D. 65,896
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An Industrial Plant bought a generator set for 90000, other expenses including installation amounted to 10000. The generator is to have 17 years with a salvage value at the end of life of 5000. Dtermine the book value at the end of 12 years by the following method;
Declining balance method
A. 10,118
B. 12,068
C. 14,393
D. 8,483
Sinking fund method at 12%
A. 45,529
B. 59,860
C. 53,100
D. 65,896
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