SUBJECT: ENGINEERING ECONOMICSPLEASE PROVIDE A COMPLETE SOLUTION FOR LETTERS A AND B. THANK YOU. 1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of 5,000. What is the book valueafter 5 years using the following methodology?a. Straight Line Method. BVs=P42,500b. Sinking Fund Method if i=9%. BVs=P50,456.44

Depreciation can be defined as the reduction in the value due to wear and tear in asset over a…

1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of P5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BVs=P42,500 b. Sinking Fund Method if i=9%. BV;=P50,456.44

1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of P5,000. What is the book value after 5 years using the following methodology? a. Straight Line Method. BVs=P42,500 b. Sinking Fund Method if i=9%. BV;=P50,456.44

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 3CE

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Question

SUBJECT: ENGINEERING ECONOMICS

PLEASE PROVIDE A COMPLETE SOLUTION FOR LETTERS A AND B. THANK YOU.

1. A Machine costs P80,000 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. Straight Line Method. BVs=P42,500
b. Sinking Fund Method if i=9%. BVs=P50,456.44

Application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

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