elevator system for a 15-yr old high-rise office building cost P 18M when first installed. The system was designed to last 30 years, with salvage value 10% of the initial cost. What is the depreciation at the end of 15 years? Use sinking fund method, assume interest at 9% compounded annually. a) P 14.51 M
elevator system for a 15-yr old high-rise office building cost P 18M when first installed. The system was designed to last 30 years, with salvage value 10% of the initial cost. What is the depreciation at the end of 15 years? Use sinking fund method, assume interest at 9% compounded annually. a) P 14.51 M
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 2E
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An elevator system for a 15-yr old high-rise office building cost P 18M when first installed. The system was designed to last 30 years, with salvage value 10% of the initial cost. What is the
a) P 14.51 M
b) P 0.12 M
c) P 1.78 M
d) P 3.50 M
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