The initial cost of an equipment is Rs.  5,00,000 and its salvage value is Rs.  20,000 is.  Its useful life is 20 years.  Then find the annual depreciation charge by (1) straight line method (2) sinking fund method.  Assuming compound interest of 8% for sinking fund method

Power System Analysis and Design (MindTap Course List)
6th Edition
ISBN:9781305632134
Author:J. Duncan Glover, Thomas Overbye, Mulukutla S. Sarma
Publisher:J. Duncan Glover, Thomas Overbye, Mulukutla S. Sarma
Chapter3: Power Transformers
Section: Chapter Questions
Problem 3.12MCQ: The per-unit quantity is always dimensionless. (a) True (b) False
icon
Related questions
icon
Concept explainers
Question

The initial cost of an equipment is Rs.  5,00,000 and its salvage value is Rs.  20,000 is.  Its useful life is 20 years.  Then find the annual depreciation charge by (1) straight line method (2) sinking fund method.  Assuming compound interest of 8% for sinking fund method

Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Load flow analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, electrical-engineering and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Power System Analysis and Design (MindTap Course …
Power System Analysis and Design (MindTap Course …
Electrical Engineering
ISBN:
9781305632134
Author:
J. Duncan Glover, Thomas Overbye, Mulukutla S. Sarma
Publisher:
Cengage Learning