A heavy equipment costs P500,000.00 and itsinstallation cost P60,000.00. Other miscellaneouscost of equipment (taxes, delivery fees, insurance,etc.) is P40,000.00. The salvage value of theequipment is 12% of its first cost and it's expectedthat the equipment will retire after 10 years. Usingthe sinking fund method of depreciation withmoney that is worth 5%.What is the annual depreciation?What is the book value after 6 years?What is the total depreciation of the equipmentafter 5 years?What is the 4th year depreciation of theequipment?

Name: A heavy equipment costs P500,000.00 and itsinstallation cost P60,000.
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Description: A heavy equipment costs P500,000.00 and itsinstallation cost P60,000.00. Other miscellaneouscost of equipment (taxes, delivery fees, insurance,etc.) is P40,000.00. The salvage value of theequipment is 12% of its first cost and it's expectedthat the

Particulars Amount (P) Cost of equipment 500000 Installation cost 60000 Other Cost 40000…

Answered: What is the annual depreciation? What…

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What is the annual depreciation? What is the book value after 6 years? What is the total depreciation of the equipment after 5 years? What is the 4th year depreciation of the

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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