3. A company bought a new equipment costing P520,000 which will have a life of 10 years. Salvage value of the equipment at the end of its expected life is P10,000. If rate of return is 6% per annum, compute the capitalized cost.

3. A company bought a new equipment costing P520,000 which will have a life of 10 years. Salvage value of the equipment at the end of its expected life is P10,000. If rate of return is 6% per annum, compute the capitalized cost.

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 19P

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Concept explainers

Types of Composite

Composite materials are formed by merging two components that have different chemical and physical properties. The merged output is termed as a composite, whose properties are completely different from the individual components. Composite materials also have better strength than the individual components.Composite materials usually have two main parts, reinforcement material, and matrix material. The matrix material acts as a binder and surrounds the fiber of another material that bears a much higher strength. This material is known as the reinforcement material. The matrix materials are usually high-strength additives resins, while the fibers of the reinforced material can be random, oriented, and in a mat format.Composite materials are also known as fiber-reinforced composite polymers because they are composed of the polymer matrix which is reinforced to laboratory-created fibers or naturally occurring fibers, such as glass fibers, carbon fibers, or aramid fibers. Under the application of external loads, the matrix material absorbs and transfers the loads to the fibers, these fibers in return provide good compressive strength, tensile strength, and stiffness to the fiber-reinforced composite materials.Depending upon the matrix and the reinforcement material, different properties can be induced to the fiber-reinforced composite materials, including good corrosion resistance properties. The most common matrix material is the resin while the glass fibers act as the reinforcement material. Strong fibers provide strength and stiffness to the composite materials while, a soft and flexible resin provides shape to the composite materials.

Question

[10 minutes]
3. A company bought a new equipment costing
P520,000 which will have a life of 10 years.
Salvage value of the equipment at the end of its
expected life is P10,000. If rate of return is 6%
per annum, compute the capitalized cost.

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