Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Engineering Economy
Compute the book value of an asset with FC of ₱4 500 000 after 7th year if it has useful life of 13 years and annual
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- Given the following data of equipment A and B. A First Cost P 50 000 P 150 000 2000 Salvage Value Annual Maintenance 6000 Economic life 6000 3000 5 15 The MARR is 12%. Use sinking fund depreciation. What is the rate of return for the additional initial investment on equipment B?arrow_forwardA furnace has an initial investment of $ 58,000 AND a recovery value after 7 years of 12.5% of your initial investment. The depreciation method to use is the double declining balance method. What will the depreciation charge be each year?arrow_forwardEngineering Economy Compute the accumulated depreciation in 8 years of an equipment with FC of ₱1 500 000 and expected to last in 15 years. Using SOYD the salvage value of the equipment is ₱200 000.arrow_forward
- A machinery worth Rs 30,000 has a lifetime of 10 years and a salvage value of Rs. 1800. Calculate the accumulated depreciation (DN) on the 10th year and book value at the end 10th year annually if interest rate is 9% using all the Depreciation methods. Show the calculation in a table.arrow_forwardENGINEERING ECONOMYarrow_forwardD. Double Declining Method Problem: Determine the rate of depreciation, the total depreciation up to end of the 8th year, and the book value at the end of 8 years for an asset that costs P15,000 now and has an estimated scrap value of P2,000 at the end of 10 years by (a) declining balance method and (b) the double declining balance method. (Make a table in Microsoft Excel)arrow_forward
- please reply asaparrow_forwardHelp please The following details relate to a particular asset Future Cash flows (per annum) 90,000 Expected period of cash flows 3 years Discount Rate 10% Open market price of asset 210,000 Cost of asset 630,000 Accumulated depreciation 450,000 Calculate both : a)determine the recoverable amount for this asset b)Determine whether the asset is impairedarrow_forwardProvide step by step manual solution, given, and depreciation table for below mentioned problem. Make sure yet that your answer is the same as the given answer before sending your solution. An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Answer. P5,263.87arrow_forward
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