Engineering Economy
Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 7, Problem 67FE
To determine

Calculate the depreciation class.

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An oil refinery has decided to purchase some new drilling equipment for $440,000. The equipment will be kept for 7 years before being sold. The estimated SV for depreciation purposes is to be $18,000. Using the SL method, what is the BV at the end of the depreciable life? Choose the correct answer below. A. The BV at the end of the depreciable life is $36,000. B. The BV at the end of the depreciable life is $44,857. C. The BV at the end of the depreciable life is $18,000. D. The BV at the end of the depreciable life is $0.
A dump truck was bought for P $ 30,000 six years ago.  It will have a salvage value of $ 3,000 four years from now.  The owner sold it now for $ 8,000.  If depreciation used is Straight Line Method, find the gain or loss in the selling of the dump truck.
An asset purchased for $50,000 has a depreciable life of 5 years, and it has a terminal book (salvage) value of $5,000 at the end of its depreciable life. With the straight-line method of depreciation, what is the asset’s book value at the end of year 3?

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Engineering Economy

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