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7 Methods of Depreciation

ENGINEERING ECONOMICS DEPRECIATION Caress G. Estelito Bethel Princess T. Flores ENGINEERING ECONOMICS Problem 438 A certain machinery costs 50000 php, last 12 years with a salvage value of 5000 php. Money is worth 5%. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction? Given: FC = 50000 SV = 5000 n = 12 x=5 i = 5% Reqd: 1. 2. 3. 4. 5. 6. 7. Straight Line Method Sinking Fund Method Declining Bala

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3K views

7 Methods of Depreciation

ENGINEERING ECONOMICS DEPRECIATION Caress G. Estelito Bethel Princess T. Flores ENGINEERING ECONOMICS Problem 438 A certain machinery costs 50000 php, last 12 years with a salvage value of 5000 php. Money is worth 5%. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction? Given: FC = 50000 SV = 5000 n = 12 x=5 i = 5% Reqd: 1. 2. 3. 4. 5. 6. 7. Straight Line Method Sinking Fund Method Declining Bala

Uploaded by

Bethel
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT or read online on Scribd
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ENGINEERING ECONOMICS

DEPRECIATION

Caress G. Estelito Bethel Princess T. Flores

ENGINEERING ECONOMICS
Problem 438 A certain machinery costs 50000 php, last 12 years with a salvage value of 5000 php. Money is worth 5%. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction?
Given: FC = 50000 SV = 5000 n = 12 x=5 i = 5% Reqd:
1. 2. 3. 4. 5. 6. 7. Straight Line Method Sinking Fund Method Declining Balance Method Double Declining Balance Method Sum of Years Digit Method (SYD) Working Hours Method Service Output method

ENGINEERING ECONOMICS
1. Straight Line Method

BV= 50000 18750 BV= 31,250

ENGINEERING ECONOMICS
2. Sinking Fund Method

BV = 50000-15621.75
BV = 34378.25

ENGINEERING ECONOMICS
3. Declining Balance Method

BV= 19695.20

ENGINEERING ECONOMICS
4. Double Declining Balance Method

BV= 205.76

ENGINEERING ECONOMICS
5. Sum of Years Digit Method (SYD)
2 years

BV= 36730.77

ENGINEERING ECONOMICS
6. Working Hours Method

BV=31,250

ENGINEERING ECONOMICS
7. Service Output Method

BV = 35, 000

ENGINEERING ECONOMICS

Thank you

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