5. A Construction firm bought one (1) unit Luffer type 50 Tons capacity tower crane and one(1) unit twin cage hoist elevator for their high rise building project for P 6,000,000. Freight and installation cost amounted to 3% of the original price. If the equipment shall be depreciated over a period of 20 years at a salvage value of 5%. What is the book value at the end of 13 years using the following method; a. Declining balance method b. Double declining balance method c. Sinking fund method at 12% interest d. SYD method Note : Show your complete solution
5. A Construction firm bought one (1) unit Luffer type 50 Tons capacity tower crane and one(1) unit twin cage hoist elevator for their high rise building project for P 6,000,000. Freight and installation cost amounted to 3% of the original price. If the equipment shall be depreciated over a period of 20 years at a salvage value of 5%. What is the book value at the end of 13 years using the following method; a. Declining balance method b. Double declining balance method c. Sinking fund method at 12% interest d. SYD method Note : Show your complete solution
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 4PROB
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