1.A machine is costing P54,000 is estimated life to have a book value of P5,050 when retired at the end of 8 years. The depreciation cost is computed using constant percentage of declining value. What is the annual rate of depreciation in percentage. K= 1- nth root Cn/Co

1.A machine is costing P54,000 is estimated life to have a book value of P5,050 when retired at the end of 8 years. The depreciation cost is computed using constant percentage of declining value. What is the annual rate of depreciation in percentage. K= 1- nth root Cn/Co

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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1.A machine is costing P54,000 is estimated life to have a book
value of P5,050 when retired at the end of 8 years. The
depreciation cost is computed using constant percentage of
declining value. What is the annual rate of depreciation in
percentage.
K = 1 - nth root Cn/Co

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