includes freight and installation charges estimated at 10% of the above total ce. If the cable shall be depreciated over a period of 15 years with zero salvage oney is worth 6% per annum, what is the annual depreciation charge? 45,567.56

includes freight and installation charges estimated at 10% of the above total ce. If the cable shall be depreciated over a period of 15 years with zero salvage oney is worth 6% per annum, what is the annual depreciation charge? 45,567.56

Traffic and Highway Engineering

5th Edition

ISBN:9781305156241

Author:Garber, Nicholas J.

Publisher:Garber, Nicholas J.

Chapter13: Evaluating Transportation Alternatives

Section: Chapter Questions

Problem 10P

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Concept explainers

Construction Process

In civil engineering, construction is the combination of art and science, to construct a physical and naturally built environment, starting from the design phase. The construction process falls under the area of building construction, which is a sub-branch of civil engineering. Hence, it is also sometimes called the design and build or design-build process. The work of construction is majorly carried out by civil engineers and design professionals along with a team of works consisting of contractors and subcontractors.

Question

A consortium of international telecommunication companies contracted for the purchase and
installation of fiber optic cable linking Manila City and Cebu City at a total cost of P 960 million.
This amount includes freight and installation charges estimated at 10% of the above total
contract price. If the cable shall be depreciated over a period of 15 years with zero salvage
value and money is worth 6% per annum, what is the annual depreciation charge?
P 12,345,567.56
P 23,123,789.45
P 31,234,789.75
P 41,244,253.40

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