- 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 P500. The service will operate for 1600 hours per year for 10 years. The maintenance cost is P300 per year, and cost to operate is PO.85 per hour for fuel and related cost. Using straight line depreciation, what is the annual cost for the operation? There is a P400 salvage value for the system at the end of 10 year. c. P2,630 d. P2,670 a. P2,710 b. P2,480

- 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 P500. The service will operate for 1600 hours per year for 10 years. The maintenance cost is P300 per year, and cost to operate is PO.85 per hour for fuel and related cost. Using straight line depreciation, what is the annual cost for the operation? There is a P400 salvage value for the system at the end of 10 year. c. P2,630 d. P2,670 a. P2,710 b. P2,480

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

31. 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
P500. The service will operate for 1600 hours per
year for 10 years. The maintenance cost is P300 per
year, and cost to operate is PO.85 per hour for fuel
and related cost. Using straight line depreciation,
what is the annual cost for the operation? There is a
P400 salvage value for the system at the end of 10
year.
a. P2,710
c. P2,630
b. P2,480
d. P2,670

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