Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 9, Problem 1P
To determine

Identify the economic depreciation.

Expert Solution & Answer
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Explanation of Solution

Economic depreciation can be calculated as follows.

Economic depreciation=Purchase priceSelling price=30,00012,000=18,000

Economic depreciation 9s $18,000.

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