Power to a remote transmitting station is provided by a Diesel-electric generator unit. The original cost of the unit is P65,000. It cost P2,000 to ship the unit to the job site. An additional cost of P3,000 was incurred for installation with an expected life of 10 years and salvage value of P5,000. Determine the annual depreciation cost by SFM at 5% interest rate.

Power to a remote transmitting station is provided by a Diesel-electric generator unit. The original cost of the unit is P65,000. It cost P2,000 to ship the unit to the job site. An additional cost of P3,000 was incurred for installation with an expected life of 10 years and salvage value of P5,000. Determine the annual depreciation cost by SFM at 5% interest rate.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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