• A group of companies decided to acquire a state-of-the-art production machine that will cost P2,500,000. It will also aquire another P50,000 for shipping and P65,000 for installation. Using standard Declining Balance Method 8% annual rate, find: a. The depreciation cost for its 3rd year of use. b. The accumulated depreciation after 6 years. c. The salvage value if it is expected to last for 15 years.

• A group of companies decided to acquire a state-of-the-art production machine that will cost P2,500,000. It will also aquire another P50,000 for shipping and P65,000 for installation. Using standard Declining Balance Method 8% annual rate, find: a. The depreciation cost for its 3rd year of use. b. The accumulated depreciation after 6 years. c. The salvage value if it is expected to last for 15 years.

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Description: • A group of companies decided to acquire a state-of-the-artproduction machine that will cost P2,500,000. It will alsoaquire another P50,000 for shipping and P65,000 forinstallation. Using standard Declining Balance Method 8%annual rate, find:a. The

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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