The cost of Laboratory equipment is P 1,000,000.00 and the cost of installation and delivery charge is P 80,000.00. If the salvage value is 13 % of the cost of equipment at the end of 5 years, determine the book value at the end of the third year. Use the straight-line method. O a. P432,708.00

The cost of Laboratory equipment is P 1,000,000.00 and the cost of installation and delivery charge is P 80,000.00. If the salvage value is 13 % of the cost of equipment at the end of 5 years, determine the book value at the end of the third year. Use the straight-line method. O a. P432,708.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The cost of Laboratory equipment is P 1,000,000.00 and the cost of installation and delivery charge is P
80,000.00. If the salvage value is 13% of the cost of equipment at the end of 5 years, determine the book
value at the end of the third year. Use the straight-line method.
O a. P432,708.00
O b. P432,780.00
O c. P423,078.00
O d. P432,078.00

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