Solution: How much could the corporation afford to pay for another type of truck?

A corporation uses a type of motor truck which costs P5,000 with life of 2 years and final salvage value of P800. How much could the corporation afford to pay for another type of truck of the same purpose whose life is 3 years with a final salvage value of P1,000. Money is worth 4%.

How much could the corporation afford to pay for another type of truck?

Problem Statement: CE Board May 1997

A corporation uses a type of motor truck which costs P5,000 with life of 2 years and final salvage value of P800. How much could the corporation afford to pay for another type of truck of the same purpose whose life is 3 years with a final salvage value of P1,000. Money is worth 4%.

  • A. P8,450.66
  • B. P7,164.37
  • C. P6,398.24
  • D. P9,034.56

Problem Answer:

The annual cost of the new motor truck is P7,164.3.

Solution:

Latest Problem Solving in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

More Questions in: Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

Online Questions and Answers in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)


Search! Type it and Hit Enter


We educate thousands of students a week in preparation for their licensure examinations. We provide professionals with materials for their lectures and practice exams. To help us go forward with the same spirit, contribution from your side will highly appreciated. Thank you in advance.


Post a Comment

Contact Form

Name

Email *

Message *

Powered by Blogger.
Javascript DisablePlease Enable Javascript To See All Widget
Real Time Web Analytics