The capitalized cost of a piece of equipment was found to be P145,000.00. The rate of interest used in the computations was 10%, with a
The capitalized cost of a piece of equipment was found to be P145,000.00. The rate of interest used in the computations was 10%, with a salvage value of $10,000.00 at the end of service life of 8 years. Assuming that the cost of perpetual replacement remains constant. Determine the original cost of the equipment
A.P82,021.50
B. P68,021.50
C. P78,021.50
D. P92,021.50
Step by Step Solution
3.44 Rating (154 Votes )
There are 3 Steps involved in it
Step: 1
Annual worth Capitalized cost Annual worth Capitalized cost xi Annual worth P142000 x ...
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
Authors: Leland T. Blank, Anthony Tarquin
8th edition
73523439, 73523437, 978-0073523439
