Solution: Calculate the annual depreciation cost by sinking-fund method at 4% interest

An equipment costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual depreciation cost by sinking-fund method at 4% interest.

Problem Statement:

An equipment costs P10,000 with a salvage value of P500 at the end of 10 years. Calculate the annual depreciation cost by sinking-fund method at 4% interest.

• A. P791.26
• B. P792.61
• C. P726.17
• D. P771.26

The annual depreciation cost by sinking-fund method at 4% interest is P791.26.

Solution:

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

More Questions 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. Option 1 : \$5 USD Option 2 : \$10 USD Option 3 : \$15 USD Option 4 : \$20 USD Option 5 : \$25 USD Option 6 : \$50 USD Option 7 : \$100 USD Option 8 : Other Amount