Example nple (1):- If the original value of the machine is 25000$ and it is 5 year old, what the value rate of the machine, if there was not any recovery value. Example (2):- For the previous example the recovery amount of the equipment is 5000$. What is the value rate of the machine? Table (1): Average Rates for Investment Costs Item Average Value (%) Interest 3 -9 Таx 2 -5 Insurance 1 - 3 Storage 0.5 – 1.5

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Example (1):-
If the original value of the machine is 25000$ and it is 5 year old, what the
value rate of the machine, if there was not any recovery value.
Example (2):-
For the previous example the recovery amount of the equipment is 5000$.
What is the value rate of the machine?
Table (1): Average Rates for Investment Costs
Average Value (%)
3 - 9
2 - 5
1 - 3
0.5 – 1..5
Item
Interest
Тах
Insurance
Storage
Transcribed Image Text:Example (1):- If the original value of the machine is 25000$ and it is 5 year old, what the value rate of the machine, if there was not any recovery value. Example (2):- For the previous example the recovery amount of the equipment is 5000$. What is the value rate of the machine? Table (1): Average Rates for Investment Costs Average Value (%) 3 - 9 2 - 5 1 - 3 0.5 – 1..5 Item Interest Тах Insurance Storage
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