ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 12, Problem 53P
To determine

To calculate: The after-tax rate of return.

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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 depreciation at the end of 15 years? Use sinking fund method, assume interest at 9% compounded annually. a) P 14.51 M b) P 0.12 M c) P 1.78 M d) P 3.50 M
11. A factory equipment has an initial cost of P200,000.00. Its salvage value after ten years is P20,000.00.As a percentage of the initial cost, what is the straight-line depreciation rate of the equipment? with cash flow
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 depreciation at the end of 15 years? Use sinking fund method, assume interest at 9% compounded annually.
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