1.

Marlito bought a new phone with his scholarship grant worth 14000 pesos with a
salvage value of 700 pesos after 3 years. What is its value after 2 years? Use straight
line depreciation method
2. Jeric bought a P350000 car 3 years ago. If it has a usable life of 8 years and interest
is worth 9%, what is its value next year? Salvage value is at P45000
3. TESDA-ISAT is planning to put up another building. The two proposals being
considered are:
Proposal A: Construction of the building now, to cost P7000000
Proposal B: Construction of a smaller building now, to cost P5000000 at the end of 5
years an extension to cost P3500000.
Which is more economical of the interest rate is 15% and depreciation is neglected?
4. The labor cost per unit is P35, cost of material per unit is P74, and other variable
cost is P7. The fixed charges on business is P200000/month. If the unit selling price is
P300, determine the number of units to be produced monthly to break-even?
5. A small entrepreneur invested a capital of P 80000 for a buy and sell business. He
estimated to have a gross income of P 25000 annually and an operating cost of P 6000
annually. It is assumed to have a life of 10 years. If the rate of interest is 12%.
Compute the benefit cost ratio.

1. Marlito bought a new phone with his scholarship grant worth 14000 pesos with a
salvage value of 700 pesos after 3 years. What is its value after 2 years? Use straight
line depreciation method
2. Jeric bought a P350000 car 3 years ago. If it has a usable life of 8 years and interest
is worth 9%, what is its value next year? Salvage value is at P45000
3. TESDA-ISAT is planning to put up another building. The two proposals being
considered are:
Proposal A: Construction of the building now, to cost P7000000
Proposal B: Construction of a smaller building now, to cost P5000000 at the end of 5
years an extension to cost P3500000.
Which is more economical of the interest rate is 15% and depreciation is neglected?
4. The labor cost per unit is P35, cost of material per unit is P74, and other variable
cost is P7. The fixed charges on business is P200000/month. If the unit selling price is
P300, determine the number of units to be produced monthly to break-even?
5. A small entrepreneur invested a capital of P 80000 for a buy and sell business. He
estimated to have a gross income of P 25000 annually and an operating cost of P 6000
annually. It is assumed to have a life of 10 years. If the rate of interest is 12%.
Compute the benefit cost ratio.