A certain machine has book value of P173,205.08 after 5 years and P82,187.59 after 8 years. The book value is computed using Declining Balance Method. Determine the initial cost of the equipment and its salvage value in its economic life of 10 years. P650,000 P550,000 P500,000 P600,000

A certain machine has book value of P173,205.08 after 5 years and P82,187.59 after 8 years. The book value is computed using Declining Balance Method. Determine the initial cost of the equipment and its salvage value in its economic life of 10 years. P650,000 P550,000 P500,000 P600,000

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Description: A certain machine has book value of P173,205.08 after 5 years and P82,187.59after 8 years. The book value is computed using Declining Balance Method.Determine the initial cost of the equipment and its salvage value in its economiclife of 10 years.P6

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 5P

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