Asap.. answer with step completely thanks.. 3. A factory is constructed at a first cost of P8,000,000 and with an estimated salvage value of P200,000 atthe end of 25 years.a. Find its appraisal value to the nearest P100 at the end of 10 years by using Sinking Fund method ofdepreciation, assuming an interest of 5%.b. Find its appraisal value at the end of 15 years by using the Straight Line method of depreciation.

The sinking fund method is a depreciation method for financing the replacement of an asset after its…

3. A factory is constructed at a first cost of P8,000,000 and with an estimated salvage value of P200,000 at the end of 25 years. a. Find its appraisal value to the nearest PI00 at the end of 10 years by using Sinking Fund method of depreciation, assuming an interest of 5%.

3. A factory is constructed at a first cost of P8,000,000 and with an estimated salvage value of P200,000 at the end of 25 years. a. Find its appraisal value to the nearest PI00 at the end of 10 years by using Sinking Fund method of depreciation, assuming an interest of 5%.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2E

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Asap.. answer with step completely thanks..

3. A factory is constructed at a first cost of P8,000,000 and with an estimated salvage value of P200,000 at
the end of 25 years.
a. Find its appraisal value to the nearest P100 at the end of 10 years by using Sinking Fund method of
depreciation, assuming an interest of 5%.
b. Find its appraisal value at the end of 15 years by using the Straight Line method of depreciation.

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