SUBJECT: ENGINEERING ECONOMY

TOPIC: Depreciation

I NEED IT ASAP, PLEASE HELP EXPERTS.

. Butler Buildings purchased semiautomated assembly and riveting robotics equipment for constructing its modular warehouse buildings. The rst cost was P4.75M and installation costs were P750K; life is estimated at 10 years with a salvage value of 15% of rst cost. Using the straight line method. determine the annual depreciation and the book value after 5 years. . An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is P600K and it has an estimated salvage value of P32K at the end of an estimated useful life of 14 years. Compute the total depreciation after 4 years and the book value at the end of ? years using the sinking fund method at interest rate of 6%. . Five years ago, NANOTech. Inc. bought an mainframe for P580000. It was to enjoy a useful life of 15 years and a salvage value of 10% of its original cost. On its tenth year, the rm plans to buy a new mainframe to meet its growing computing needs the projected amount for its acquisition is P870.000. If the old mainframe will be sold on its tenth year, how much should the firm raise in order to purchase the new mainframe? Use SYD method . A radio service panel truck initially costs P560,000. Its resale value at the end of the 5th year of the useful life is estimated at P150,000. Determine the depreciation charge for the rst year using the declining balance method. Determine the rate of depreciation, the total depreciation up to the end of the 3th year and the book value at the end of 8 years for an asset that costs P150000 when new and has an estimated scrap value of P20,000 at the end of 10 years using the double declining balance method. . A piece of equipment used in a business was acquired at a cost of P500.000 and is expected to have a salvage value of P58.000 when replaced after 30,000 hours of use. Find its depreciation rate per hour of use and nd its book value after 10,000 hours of operation