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    ENGINEERING ECONOMICS DEPRECIATION Caress G. Estelito Bethel Princess T. Flores ENGINEERING ECONOMICS Problem 438 A certain machinery costs 50000 php, last 12 years with a salvage value of 5000 php. Money is worth 5%. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction? Given: FC = 50000 SV = 5000 n = 12 x=5 i = 5% Reqd: 1. 2. 3. 4. 5. 6. 7. Straight Line Method Sinking Fund Method Declining Bala

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    ENGINEERING ECONOMICS DEPRECIATION Caress G. Estelito Bethel Princess T. Flores ENGINEERING ECONOMICS Problem 438 A certain machinery costs 50000 php, last 12 years with a salvage value of 5000 php. Money is worth 5%. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction? Given: FC = 50000 SV = 5000 n = 12 x=5 i = 5% Reqd: 1. 2. 3. 4. 5. 6. 7. Straight Line Method Sinking Fund Method Declining Bala

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    Download as PPT or read online from Scribd
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    3K views10 pages

    7 Methods of Depreciation

    Uploaded by

    Bethel
    ENGINEERING ECONOMICS DEPRECIATION Caress G. Estelito Bethel Princess T. Flores ENGINEERING ECONOMICS Problem 438 A certain machinery costs 50000 php, last 12 years with a salvage value of 5000 php. Money is worth 5%. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction? Given: FC = 50000 SV = 5000 n = 12 x=5 i = 5% Reqd: 1. 2. 3. 4. 5. 6. 7. Straight Line Method Sinking Fund Method Declining Bala

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT or read online from Scribd
    Flag for inappropriate content
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    ENGINEERING ECONOMICS

    DEPRECIATION

    Caress G. Estelito Bethel Princess T. Flores

    ENGINEERING ECONOMICS
    Problem 438 A certain machinery costs 50000 php, last 12 years with a salvage value of 5000 php. Money is worth 5%. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction?
    Given: FC = 50000 SV = 5000 n = 12 x=5 i = 5% Reqd:
    1. 2. 3. 4. 5. 6. 7. Straight Line Method Sinking Fund Method Declining Balance Method Double Declining Balance Method Sum of Years Digit Method (SYD) Working Hours Method Service Output method

    ENGINEERING ECONOMICS
    1. Straight Line Method

    BV= 50000 18750 BV= 31,250

    ENGINEERING ECONOMICS
    2. Sinking Fund Method

    BV = 50000-15621.75
    BV = 34378.25

    ENGINEERING ECONOMICS
    3. Declining Balance Method

    BV= 19695.20

    ENGINEERING ECONOMICS
    4. Double Declining Balance Method

    BV= 205.76

    ENGINEERING ECONOMICS
    5. Sum of Years Digit Method (SYD)
    2 years

    BV= 36730.77

    ENGINEERING ECONOMICS
    6. Working Hours Method

    BV=31,250

    ENGINEERING ECONOMICS
    7. Service Output Method

    BV = 35, 000

    ENGINEERING ECONOMICS

    Thank you

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