Contemporary Engineering Economics Plus MyLab Engineering with eText -- Access Card Package (6th Edition)
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Chapter 9, Problem 21P
To determine

Calculate the difference in book value.

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A company has purchased an equipment whose first cost is Rs. 1,50,000 with an estimated life of ten years. The estimated salvage value of the equipment at the end of its lifetime is Rs. 25,000. Determine the depreciation charge and book value at the end of various years through declining balance method of depreciation by assuming the value of K as 0.4. Also find the book value for period 7 separately by using the same method.
An electric bulb bought for P100 is guaranteed to be used for 50 hours. The certain company uses the said bulb 10 hours a day. If there is no scrap value for the bulb, compute the daily depreciation, and create the depreciation table throughout its economic life
A radio service panel truck initially costs P 56,000. If resale value at the end of the fifth year is estimated at P 15,000. By means of the Declining Balance Method, determine the yearly depreciation charge for the first and second years.
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