Question 28 N plc purchased a machine for $18,000. The transportation costs were $1,700 and installation costs were $500. The machine broke down at the end of the first month in use and cost $400 to repair. N plc depreciates machinery at 10% per annum on cost, assuming no residual value. What is the net book value of the machine after one year, to the nearest pound? $ .

Question 28 N plc purchased a machine for $18,000. The transportation costs were $1,700 and installation costs were $500. The machine broke down at the end of the first month in use and cost $400 to repair. N plc depreciates machinery at 10% per annum on cost, assuming no residual value. What is the net book value of the machine after one year, to the nearest pound? $ .

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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