Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. The equipment in a power station costs $ 2,500,000 and expected to have a salvage value of $ 50,000 at the end of 25
1. The equipment in a power station costs $ 2,500,000 and expected to have a salvage value of $ 50,000 at the end of 25 years. However, after 18 years, new policy has been implemented and all the equipment need to be replaced in the next 4 years. Determine the depreciated value of the equipment at this new end term, on the following methods : (i) Straight line method (ii) Diminishing value method Sinking fund method at 5% compound interest annually [15 marks] 2. From problem 1, discuss what is the most sensible and reliable method if you are given the chance to head this project. [5 marks] 3. Load factor is very important in operating the power plant, explain your reasons. [5 marks]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started