ENGINEERING ECONOMICS
Prefinal Quiz 1
1. A telephone company purchased a microwave radio equipment for
P6,000,000. Freight and installation charges amounted to 3% of the
purchase price. If the equipment shall be depreciated over a period of 8
years with a salvage value of 5%, determine the following:
a. Annual depreciation charge using the straight-line method.
(10pts)
b. Depreciation charge during the fifth year using the
sum-of-the-years-digits method. (10pts)
2. A broadcasting corporation purchased an equipment that costs P7,000,
last 8 years and has a salvage value of P350. Determine the book value
during the 4th using the declining balance method. (10pts)
3. Power to a remote transmitting station is provided by a Diesel-electric
generator unit. The original cost of the unit is P65,000. It costs P2,000
to ship the unit to the job site. An additional cost of P3,000 was
incurred for the installation. Determine the annual depreciation cost by
the straight-line method, if the unit has an expected life of 10 years. The
salvage value of the unit at the end of its life was estimated at P5,000.
(10pts)
ENGINEERING ECONOMICS
Prefinal Quiz 1
1. A telephone company purchased a microwave radio equipment for
P6,000,000. Freight and installation charges amounted to 3% of the
purchase price. If the equipment shall be depreciated over a period of 8
years with a salvage value of 5%, determine the following:
a. Annual depreciation charge using the straight-line method.
(10pts)
b. Depreciation charge during the fifth year using the
sum-of-the-years-digits method. (10pts)
2. A broadcasting corporation purchased an equipment that costs P7,000,
last 8 years and has a salvage value of P350. Determine the book value
during the 4th using the declining balance method. (10pts)
3. Power to a remote transmitting station is provided by a Diesel-electric
generator unit. The original cost of the unit is P65,000. It costs P2,000
to ship the unit to the job site. An additional cost of P3,000 was
incurred for the installation. Determine the annual depreciation cost by
the straight-line method, if the unit has an expected life of 10 years. The
salvage value of the unit at the end of its life was estimated at P5,000.
(10pts)
ENGINEERING ECONOMICS
Prefinal Quiz 1
1. A telephone company purchased a microwave radio equipment for
P6,000,000. Freight and installation charges amounted to 3% of the
purchase price. If the equipment shall be depreciated over a period of 8
years with a salvage value of 5%, determine the following:
a. Annual depreciation charge using the straight-line method.
(10pts)
b. Depreciation charge during the fifth year using the
sum-of-the-years-digits method. (10pts)
2. A broadcasting corporation purchased an equipment that costs P7,000,
last 8 years and has a salvage value of P350. Determine the book value
during the 4th using the declining balance method. (10pts)
3. Power to a remote transmitting station is provided by a Diesel-electric
generator unit. The original cost of the unit is P65,000. It costs P2,000
to ship the unit to the job site. An additional cost of P3,000 was
incurred for the installation. Determine the annual depreciation cost by
the straight-line method, if the unit has an expected life of 10 years. The
salvage value of the unit at the end of its life was estimated at P5,000.
(10pts)
ENGINEERING ECONOMICS
Prefinal Quiz 1
1. A telephone company purchased a microwave radio equipment for
P6,000,000. Freight and installation charges amounted to 3% of the
purchase price. If the equipment shall be depreciated over a period of 8
years with a salvage value of 5%, determine the following:
a. Annual depreciation charge using the straight-line method.
(10pts)
b. Depreciation charge during the fifth year using the
sum-of-the-years-digits method. (10pts)
2. A broadcasting corporation purchased an equipment that costs P7,000,
last 8 years and has a salvage value of P350. Determine the book value
during the 4th using the declining balance method. (10pts)
3. Power to a remote transmitting station is provided by a Diesel-electric
generator unit. The original cost of the unit is P65,000. It costs P2,000
to ship the unit to the job site. An additional cost of P3,000 was
incurred for the installation. Determine the annual depreciation cost by
the straight-line method, if the unit has an expected life of 10 years. The
salvage value of the unit at the end of its life was estimated at P5,000.
(10pts)
ENGINEERING ECONOMICS
Prefinal Quiz 1
1. A telephone company purchased a microwave radio equipment for
P6,000,000. Freight and installation charges amounted to 3% of the
purchase price. If the equipment shall be depreciated over a period of 8
years with a salvage value of 5%, determine the following:
a. Annual depreciation charge using the straight-line method.
(10pts)
b. Depreciation charge during the fifth year using the
sum-of-the-years-digits method. (10pts)
2. A broadcasting corporation purchased an equipment that costs P7,000,
last 8 years and has a salvage value of P350. Determine the book value
during the 4th using the declining balance method. (10pts)
3. Power to a remote transmitting station is provided by a Diesel-electric
generator unit. The original cost of the unit is P65,000. It costs P2,000
to ship the unit to the job site. An additional cost of P3,000 was
incurred for the installation. Determine the annual depreciation cost by
the straight-line method, if the unit has an expected life of 10 years. The
salvage value of the unit at the end of its life was estimated at P5,000.
(10pts)
ENGINEERING ECONOMICS
Prefinal Quiz 1
1. A telephone company purchased a microwave radio equipment for
P6,000,000. Freight and installation charges amounted to 3% of the
purchase price. If the equipment shall be depreciated over a period of 8
years with a salvage value of 5%, determine the following:
a. Annual depreciation charge using the straight-line method.
(10pts)
b. Depreciation charge during the fifth year using the
sum-of-the-years-digits method. (10pts)
2. A broadcasting corporation purchased an equipment that costs P7,000,
last 8 years and has a salvage value of P350. Determine the book value
during the 4th using the declining balance method. (10pts)
3. Power to a remote transmitting station is provided by a Diesel-electric
generator unit. The original cost of the unit is P65,000. It costs P2,000
to ship the unit to the job site. An additional cost of P3,000 was
incurred for the installation. Determine the annual depreciation cost by
the straight-line method, if the unit has an expected life of 10 years. The
salvage value of the unit at the end of its life was estimated at P5,000.
(10pts)