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As an assistant engineer you are requested by the manager of your company to determine the amount required to buy a company car and then replace it and succeeding cars every 5 years up to a period of 25 years. The trade- in value of the car at the end of each 5 years is estimated to be PhP 10,000.00 and the replacement costs PhP 30,000.00 delivered. Annual operating costs, including depreciation are estimated to be PhP 8,000.00. The fund is to be invested at 8%, and is to have a balance of PhP 35,000.00 at the end of 25 years.

As an assistant engineer you are requested by the manager of your company to determine the amount required to buy a company car and then replace it and succeeding cars every 5 years up to a period of 25 years. The trade- in value of the car at the end of each 5 years is estimated to be PhP 10,000.00 and the replacement costs PhP 30,000.00 delivered. Annual operating costs, including depreciation are estimated to be PhP 8,000.00. The fund is to be invested at 8%, and is to have a balance of PhP 35,000.00 at the end of 25 years.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As an assistant engineer you are requested by the manager of your company to determine the amount required to buy a company car and then replace it and succeeding cars every 5 years up to a period of 25 years. The trade- in value of the car at the end of each 5 years is estimated to be PhP 10,000.00 and the replacement costs PhP 30,000.00 delivered. Annual operating costs, including depreciation are estimated to be PhP 8,000.00. The fund is to be invested at 8%, and is to have a balance of PhP 35,000.00 at the end of 25 years.
Transcribed Image Text:As an assistant engineer you are requested by the manager of your company to determine the amount required to buy a company car and then replace it and succeeding cars every 5 years up to a period of 25 years. The trade- in value of the car at the end of each 5 years is estimated to be PhP 10,000.00 and the replacement costs PhP 30,000.00 delivered. Annual operating costs, including depreciation are estimated to be PhP 8,000.00. The fund is to be invested at 8%, and is to have a balance of PhP 35,000.00 at the end of 25 years.
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