ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 13, Problem 17P
To determine

To develop:An expression to find out the year of optimal economic life of truck.

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Show your complete solution. 19. A machine cost 7,350 has a life of 8 years and has a salvage value of 350 at the end of a years. Determine its book value at the end of 4 years using Constant- Percentage of Declining Value.
A dump truck costs $ 50 000 lasts 12 years with a salvage value of $ 5000. If the owner decides to sell it after using for 5 years, what should be his price be so that he will not lose or gain financiallly in the transaction? Use declining balance method for Depreication. a. 20 094 b. 22 176 c. 19 115 d. 29 906 A heavy equipment was bought for P $ 30, 000 six years ago. It will have a salvage value of $ 3000 four years from now. The owner sold it now for $ 18 000. If depreciation used is Sinking Fund Method at 6%, find the gain or loss in selling the equipment. a. $ 7712 loss b. $2288 loss c. $2288 gain d. $7712 gain
An engineer bought an equipment for 500,000. He spent an additional amount of 35,000 for installation and other expenses. The estimated useful life of the equipment is 10 years. The salvage value is x% of the first cost. Using the straight line method of depreciation, the book value at the end of 5 years will be 291,500. What is the value of x? Draw the cashflow if necessary
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