Find the salvage value of the machine if it has an economic life of 15 years.
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- A machine costs P1,800,000.00. It has a salvage value of P300,000 at the end of 5 years. If money is worth 6% annually. Determine the total depreciation at the 2nd year using the sum of years method.A machine costs P 800 000 and has an estimated salvage value of P 200 000 at the end of 20 years useful life. Compute the book value at the end of 2nd year using sinking fund method of depreciation based on 8% interest rate.A P650 000.00 - Diesel Electric generator unit is purchased to provide power to a remote town. The shipping cost is P20 000.00 and the cost of installation is P 30 000.00. If the salvage value of the unit at the end of 20 years is expected to be P50 000.00, determine the annual depreciation cost and the book value of the unit after five years using: a) Straight Line Method b) Sinking fund formula with 7% interest rate
- Ten years ago a businessman purchased a machine for P 50,000 with an expected life of 20 years based on straight line depreciation. Today, he decided to replace it with a modern one that costs P 120,000. If the salvage value of the old unit is P 20,000, how much more will he raise to buy the new machine? a. P 55,000 b. P 45,000 c. P 90,000 d. P 75,000An industrial plant bought a generator set for P80,000. Other expenses including installation amounted to P20,000. The generator set is to have a life of 17 years with a salvage value of P5000. Determine the depreciation charge during the 13th year and the book value at the end of 13 years by: (a.) Declining balance method (b.) Double declining balance method (c.) sinking fund method at 12% (d.) SYD method Kindly solve this Engineering economy problem. Thank youPrepare a depreciation table for semiconductor manufacturing equipment that cost P1.8M, with an estimated salvage value of 10% of the original cost at the end of 5 years using the straight-line method.
- 9. An engineer bought an equipment for P500,000. Other expenses including installation amounted toP30,000. At the end of its estimated useful life of 10 years, the salvage value will be 10% of the first cost. Usingstraight line method of depreciation, what is the book value after 5 years? with cash flowA man bought an equipment which cost P520,000.00. Freight and installation expenses cost him 31,000.00. If the life of the equipment is 15 years with an estimated salvage value of P120,000.00, find its book value after 8 years.Cost of machine = P 1.4 MUseful life = 8 yearsSalvage value = P10, 000Determine the 4thyear depreciation using double declining balance method.
- A certain equipment costs P7,000 has a salvage value of P350 at the end of its life. The book value at the end of 14 years is P2,197.22. Using Sum of the Years-Digits Method of Depreciation, determine the following: a. Length of service of the equipment. b. Depreciation charge on the 5th year. c. Book value after 7 years.A machine cost P80,000 and the salvage value is P20,000 after 10yrs. Calculate the depreciation at year 6. Use Sum of Year's Digit Method. note: please provide a solution for us to understand how to solve it thank you please don't use computer, please solve itA contractor can buy trucks for P 800,000 each or rent them for P 1,200 per truck per day. The truck has a salvage value of P 100,000 at the end of its useful life of 5 years. The annual maintenance cost is P 20,000 per truck. Using the annual worth method and 14% interest rate, determine the minimum number of days per year that each truck must be used to warrant its purchase.