sewage pump equipment initially costs P95,000. Annual maintenance costs are P1850. The equipment’s salvage value is 10 percent of the initial cost in 20 years. Using 8% interest, what is the annual cost of the equipment? a) P11,318
sewage pump equipment initially costs P95,000. Annual maintenance costs are P1850. The equipment’s salvage value is 10 percent of the initial cost in 20 years. Using 8% interest, what is the annual cost of the equipment? a) P11,318
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 30P
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Question
A sewage pump equipment initially costs P95,000. Annual maintenance costs are P1850. The equipment’s salvage value is 10 percent of the initial cost in 20 years. Using 8% interest, what is the annual cost of the equipment?
a) P11,318
b) P7,673
c) P3,718
d) P9,473
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