Contemporary Engineering Economics (6th Edition)
Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 9, Problem 9P
To determine

Calculate the depreciation.

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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
On 2021 January 2, a new printing machine was acquired for $900,000. The machine has an estimated salvage value of $100,000 and an estimated useful life of 10 years. The machine is expected to produce a total of 500,000 units of election materials throughout its useful life. Compute depreciation for 2021 and 2022 using each of the following methods: Straight line. Units of production (assume 30,000 and 60,000 units were produced in 2021 and 2022, respectively). Double-declining balance.
SplashCo Space Company has purchased a launcher system for launching passenger rockets into the edge of space from Norman Wells, NT. The cost of the new system was $250,000 and it has a service life of 10 years. For the first six years, depreciation of the system was calculated using the declining balance method at a rate of 30%. During the last four years, the straight line method was used for accounting purposes to bring the book value to $0 at the end of its service life. Make a table in Excel with the book values at the end of each year. Include the table in your submission to d2. What was the book value of the system after 3, 5, 7, and 9 years?
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