Alternativeo Useful S.V. (1000 Income Life ID) (*1000 ID.) (year) A 7 2400 6000 В 5 3000 8000 C 8 2000 o 4000

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
Section: Chapter Questions
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There are three alternatives for equipment to choose from. The following table
shows the available information's:
Alternativeo Useful S.V. (1000
Life
Book value at the end of 3" year (1000
ID)
Income
ID)
(*1000 ID.)
(year)
12000 ID using straight line
depreciation
7200 ID using sum-of-the years digits
5800 ID using sinking fund method
A
7
2400
6000
3000
8000
C
8
2000 D
4000
You are required to select the most economical alternative from the above three. Make your
decision on the basis that interest rate is 15% compounded annually
Transcribed Image Text:There are three alternatives for equipment to choose from. The following table shows the available information's: Alternativeo Useful S.V. (1000 Life Book value at the end of 3" year (1000 ID) Income ID) (*1000 ID.) (year) 12000 ID using straight line depreciation 7200 ID using sum-of-the years digits 5800 ID using sinking fund method A 7 2400 6000 3000 8000 C 8 2000 D 4000 You are required to select the most economical alternative from the above three. Make your decision on the basis that interest rate is 15% compounded annually
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