1231231

Problem Set # 14 – Engineering Economics 1. An asset is purchased purchased for for P500,000. he sal!age sal!age !alue in "5 ears is is P$0,000% &hat are the depreciation in the 'rst three ears using straight line method( A. P 4$,000.00 ). P "4,000.00 *. P +",000.00 . P 1-,$00.00 ". A machine has an initial initial cost of P50,000 and a sal!age sal!age !alue of P 5,000 after 10 ears &hat is the boo !alue after '!e ears using straight line depreciation( A. P "/,500.00 ). P "5,000.00 *. P 15,500.00 . P +0,000.00 +. A machine has a 'rst cost of P 50,000 &ith interest interest rate rate of 10 annuall annuall.. Epected sal!age !alue !alue after 10 ears is P 5,000. ind ind the boo !alue after 5 ears using sining fund method. A. P 1",0+2 ). P "",0$4 *. P 4",0$4 . P +",/-" 4. An asset is purchased purchased for for P10,000. 3ts estimated life is 10 ears after &hich &hich it &ill be sold for P1,000.00. ind the boo !alue during the 4 th ear if the sum of the ears digit S67 depreciation is used. A. P-,100.00 ). P4,+0/.-2 *. P5,0$".00

8

P4,-2".+0 5. A compan purchas purchases es an asset asset for P"0,000 P"0,000 and plans to eep it it for 15 ears. 3f the sal!age !alue is 9ero at the end of the "0 th ear, &hat is the depreciation in the third ear( :se sum of the ears digit depreciation. A. P1,000.00 ). P"1--.-/ *. P2+-.00 . P/4/.00 -. An asset is purchased purchased for for P10,000. 3ts estimated life is 10 ears after &hich &hich it &ill be sold for P1,000. ind the boo !alue during the 'rst ear if sum of the ears digit S67 depreciation is used A. P$.+-+.-4 ). P-,500.00 *. P/,545.00 . P-000.00 /. An item is purchased purchased for P150.000. P150.000. annual annual cost is P10,000. :sing 10; 10; &hat is the capitali9ed cost of perpetual ser!ise( A. P+5",000 ). "50,000 *. P5+",000 . P+"5,000 $. A machine machine has a 'rst cost cost of P-0,000 P-0,000 and has an epec epected ted sal!age sal!age !alue !alue after 10 ears is P-,000. ind the boo !alue after - ears using declining balance method. A. P10,0"$.+4

). P15,0/1.+"

* P"0,0$+.45

. P"5,0$+.45 2. An e