I need the answer quickly The equipment in a power station costs 850000 S and has a salvage value ofQ5 7000 S at the end of 30 years. Determine the depreciated value of the equipmentat the end of 22 years on the following methods (1) Diminishing valuemethod, (2) Sinking fund method at 6 % compound interest annually.

Depreciation is the reduction in the value of fixed assets due to normal wear and tear, passage of…

Answered: The equipment in a power station costs…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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The equipment in a power station costs 850000 S and has a salvage value of Q5 7000 $ at the end of 30 years. Determine the depreciated value of the equipment at the end of 22 years on the following methods (1) Diminishing value method, (2) Sinking fund method at 6 % compound interest annually.