value aft
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value
after 5 years using the following methodology?
a. Service-Output Method. Assuming that the total service of the machine is 1,497,600 hours and the number of working days per year is 260 days. What is the book value after 4 years if the machine production time a is 24 hours? BV4 = P 78,750.00
Note: Provide solution since the answers are already shown and include the CASH FLOW DIAGRAM. Please use manual solution and not excel solutions
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