Using DBM, the book value of a machine on the 4th year and 7th year are P186,706 and P48,392 respectively. What is the salvage value if the machine has an estimated life of 14 years?

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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Using DBM, the book value of a machine on the 4th year and 7th year are P186,706 and P48,392 respectively. What is the salvage value if the machine has an estimated life of 14 years?
4.If the depreciation on year 6 is 18,856 and the book value on the same year is 468,573 and money is worth 5.00%, find the salvage value of the equipment with expected life of 12 years using SFM.

Write your final answer in two decimal places.

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