The initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10 years. The estimated salvage value of the equipment at the end of the useful life is P450,000. Determine the depreciation at 5th year instant when 6% interest is applied using the sinking fund formula. Also, determine the Book Value at 7th year.

The initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10 years. The estimated salvage value of the equipment at the end of the useful life is P450,000. Determine the depreciation at 5th year instant when 6% interest is applied using the sinking fund formula. Also, determine the Book Value at 7th year.

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 6RQ

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