8) A machine costing P2,500 has an estimated useful life of 4 years with a scrap value of P500.Compute its depreciation usingA. Straight-line Methoda. If the management will decide to sell the machine after 2 years, what is its book value?b. After 3 years, what is the accumulated depreciation?B. Sum of year's digit methoda. If the management will decide to sell the machine after 3 years, what is its book value?b. After 2 years, what is the accumulated depreciation?9) Crispin wants to buy a motorcycle. His mother will loan him some money at only 6% compoundedquarterly. If Crispin estimates that he will be able to repay a total of P3,600 in 2 years,A. How much should he borrow from his mother today?B. How much is the discount interest that his mother will gain out of the loan?10) Compute the simple interest and final amount of each loanPrincipalRateTimeInterestFinal amountP 4007%??1 year3 monthsP 6409%??P 98510%??180 days (ordinary time period)60 days (exact time period)P 8506%??ABCD

Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…

8) A machine costing P2,500 has an estimated useful life of 4 years with a scrap value of P500. Compute its depreciation using A. Straight-line Method a. If the management will decide to sell the machine after 2 years, what is its book value? b. After 3 years, what is the accumulated depreciation? B. Sum of year's digit method a. If the management will decide to sell the machine after 3 years, what is its book value? b. After 2 years, what is the accumulated depreciation?

8) A machine costing P2,500 has an estimated useful life of 4 years with a scrap value of P500. Compute its depreciation using A. Straight-line Method a. If the management will decide to sell the machine after 2 years, what is its book value? b. After 3 years, what is the accumulated depreciation? B. Sum of year's digit method a. If the management will decide to sell the machine after 3 years, what is its book value? b. After 2 years, what is the accumulated depreciation?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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