Determine the difference in the total depreciation between the two modes of depreciation after 9 years. Using SLM and SFM. Original Cost of the Unit: P105,800 Shipping and Installation: P21,740 Expected Life: 25 years Salvage value: P9,978 For sinking fund method, annual charge in a fund raising a compound interest at the rate of 6.17%. Write your final answer in two decimal places. Enter the absolute value.

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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Determine the difference in the total depreciation
between the two modes of depreciation after 9
years. Using SLM and SFM.
Original Cost of the Unit: P105,800
Shipping and Installation: P21,740
Expected Life: 25 years
Salvage value: P9,978
For sinking fund method, annual charge in a fund
raising a compound interest at the rate of 6.17%.
Write your final answer in two decimal places.
Enter the absolute value.
Transcribed Image Text:Determine the difference in the total depreciation between the two modes of depreciation after 9 years. Using SLM and SFM. Original Cost of the Unit: P105,800 Shipping and Installation: P21,740 Expected Life: 25 years Salvage value: P9,978 For sinking fund method, annual charge in a fund raising a compound interest at the rate of 6.17%. Write your final answer in two decimal places. Enter the absolute value.
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