ABC Corporation purchases a machine worth P 1,500,000. The freight cost is P 100,000 and set-up charges is P 250,000. The corporation estimates that the machine will have a useful life of 16 years, at the end of which it will have a salvage value of P 250,000. Compute the ff: a) total cost b) total depreciation. c) annual depreciation, depreciation rate d) and book value after 8 years.

ABC Corporation purchases a machine worth P 1,500,000. The freight cost is P 100,000 and set-up charges is P 250,000. The corporation estimates that the machine will have a useful life of 16 years, at the end of which it will have a salvage value of P 250,000. Compute the ff: a) total cost b) total depreciation. c) annual depreciation, depreciation rate d) and book value after 8 years.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 4PROB

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