purchase of a motor for P6000 and a generator for P4000 will allow the company to produce its own energy. The configuration can be assembled for P359. The service will operate for 1,046 hourrs/year for 10 years. The maintenance cost is P300/year and the cost to operare is P0.85/h for fuel related cost. There is P1,805 in salvage value for the system at the end of 10 years. Using sinking fund depreciation, interest rate of 10%, What is the annual cost for the operation?
purchase of a motor for P6000 and a generator for P4000 will allow the company to produce its own energy. The configuration can be assembled for P359. The service will operate for 1,046 hourrs/year for 10 years. The maintenance cost is P300/year and the cost to operare is P0.85/h for fuel related cost. There is P1,805 in salvage value for the system at the end of 10 years. Using sinking fund depreciation, interest rate of 10%, What is the annual cost for the operation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The purchase of a motor for P6000 and a generator for P4000 will allow the company to produce its own energy. The configuration can be assembled for P359. The service will operate for 1,046 hourrs/year for 10 years. The maintenance cost is P300/year and the cost to operare is P0.85/h for fuel related cost. There is P1,805 in salvage value for the system at the end of 10 years. Using sinking fund depreciation , interest rate of 10%, What is the annual cost for the operation?
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