Subject: Engineerings Economics Topics:1. Declining Balance Method (DBM)Please help me to solve this in step by step manner. Make sure to analyze the question well.BOX your final answer Question: A machine cost P160,000 and is estimated to have a life of 6 years. If the rate of depreciation is 25%, find the salvage value using the declining balance method.Please use the following sources AND THE FORMULA below: Double Declining Balance (DDB) MethodThis method is very similar to the declining balance method except that the rate of depreciationk is replaced by 2/L.-(1-3-1=C₁ = Co (1C₁ = Co (1-3² Blank, L. & Tarquin, A. (2018). EngineeringEconomy (8th Ed.). McGraw-Hill Education.Sullivan, W., Wicks, E. & Koelling, C. P. (2014).Engineering Economy (16th Ed.). PearsonEducation South Asia Pte Ltd.Sta. Maria, H. (2000). Engineering Economy(3rd Ed.). National Book Store.Arreola, M. (1993). Engineering Economy(3rd Ed.). Ken Incorporated.

The first cost of the machine FC=160,000 Service life n=6 years Rate of depreciation =25% Salvage…

Answered: A machine cost P160,000 and is…

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Subject: Engineerings Economics
Topics:
1. Declining Balance Method (DBM)

Please help me to solve this in step by step manner.
Make sure to analyze the question well.
BOX your final answer

Question:
A machine cost P160,000 and is estimated to have a life of 6 years. If the rate of depreciation is 25%, find the salvage value using the declining balance method.

Please use the following sources AND THE FORMULA below:

Double Declining Balance (DDB) Method
This method is very similar to the declining balance method except that the rate of depreciation
k is replaced by 2/L.
-(1-3-1
=
C₁ = Co (1
C₁ = Co (1-3²

Blank, L. & Tarquin, A. (2018). Engineering
Economy (8th Ed.). McGraw-Hill Education.
Sullivan, W., Wicks, E. & Koelling, C. P. (2014).
Engineering Economy (16th Ed.). Pearson
Education South Asia Pte Ltd.
Sta. Maria, H. (2000). Engineering Economy
(3rd Ed.). National Book Store.
Arreola, M. (1993). Engineering Economy
(3rd Ed.). Ken Incorporated.

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