An engineering firm purchased 25 years ago a mini power plant for Php 5.0 M. Other expenses including repairs amounted to Php 500,000. The mini power plant is up to next 25 years only and for the plant to operate. The salcage value is Php 500,000. Determine the depreciation charge during the 20TH and 40TH year. Also determine the book value at the end of 25th and 45th years if interest is 12% using a) Sum of the Years Digit method, b) Sinking Fund method and c) Double Declining Balance method . Pls show complete handwritten solution An engineering firm purchased 25 years ago a mini power plant for Php 5.0 M. Otherexpenses including repairs amounted to Php 500,000. The mini power plant is up to next25 years only and for the plant to operate. The salcage value is Php 500,000. Determinethe depreciation charge during the 20H and 40TH year. Also determine the book value atthe end of 25th and 45th years if interest is 12% using a) Sum of the Years Digit method, b)Sinking Fund method and c) Double Declining Balance method .

Definition: generally a decent level of the fixed expense of a property and that is intermittently…

Answered: engineering firm purchased 25 years ago…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An engineering firm purchased 25 years ago a mini power plant for Php 5.0 M. Other
expenses including repairs amounted to Php 500,000. The mini power plant is up to next
25 years only and for the plant to operate. The salcage value is Php 500,000. Determine
the depreciation charge during the 20TH and 40TH year. Also determine the book value at
the end of 25th and 45th years if interest is 12% using a) Sum of the Years Digit method, b)
Sinking Fund method and c) Double Declining Balance method .

Pls show complete handwritten solution

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