A machine shop purchased 11 years ago a milling machine for Php60,000. A sum-of-the-year ’s-digit method had been provided based on the twenty-year life of a machine. The owner of the machine shop desires to replace the old milling machine with a modern unit having many advantages costing Php100,000. It can sell the old unit for Php20,000 after its useful life. How much additional capital will be required for the purchases?

A machine shop purchased 11 years ago a milling machine for Php60,000. A sum-of-the-year ’s-digit method had been provided based on the twenty-year life of a machine. The owner of the machine shop desires to replace the old milling machine with a modern unit having many advantages costing Php100,000. It can sell the old unit for Php20,000 after its useful life. How much additional capital will be required for the purchases?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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