A machine costs P150000 The book value at the end of 2 years is estimated to be P870000. If the salvage value the end of its useful life is P600000. What os the machine's economic life in years using the sum of years method.

A machine costs P150000 The book value at the end of 2 years is estimated to be P870000. If the salvage value the end of its useful life is P600000. What os the machine's economic life in years using the sum of years method.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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Question

A machine costs P150000 The book value at the end of 2 years is
estimated to be P870000. If the salvage value the end of its useful
life is P600000. What os the machine's economic life in years
using the sum of years method.

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