Answered: after 5 years

Engineering

Civil Engineering

after 5 years

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 6RQ

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Question

1. A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is the book value
after 5 years using the following methodology?

a. Sum of the Years Digit Method. BV5=₱25,454.55
b. Sum of the Years Digit Method. BV4 = P 78,750.00

Note: Provide solution since the answers are already shown and include the cash flow diagram. Please use manual solution and not excel solutions.

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