Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Ten years ago a small steam plant of 2000 kw capcity costing P125, per kw was erected. The life was estimated at 15 years and the salvage value is 5%. At present, abandoning the old plant in favor of a new diesel plant is being considered. A market has been found for the old engine and boiler equipment at P15,000. The remainder of the old plant can be utilized in the new and has a valuation of P8,500.00. Depreciation has been figured on straight line basis. What is the difference between the
a. 77,890.60
b. 76,666.70
c. 78,234.56
d. 77,680.65
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