A powerplant costs Php 3,750,800 to build.

Its life is assumed to be 20 years at a salvage value 15% of its

original cost. If the interest is 5% compounded annually, calculate:

A. Sinking Fund Payment

B. Total depreciation at the end of 18 yrs using diminishing value
C. Tabulate the BV using SFM and DV at the end of 18th yr

Determine the annual cost of feedwater softener for hydro-electric plant; if the plant cost Php 1,500,000
with a salvage value of zero at the end of 10 yrs. The cost od annual repair and maintenance is Php
50,000, the cost of chemical additive is Php 41,250, and a labor cost of Php 12,000/month. Calculate the
annual cost of feedwater if the sinking fund depreciation is at a rate of 4%.

a. Compare the result of the cost of feedwater softener using SLM

b. Total BV and depreciation charge of the plant at the end of 8 yrs using SFM and SLM

The fixed element invested in a 100,000kW powerplant is Php 15,000,000 find its average cost/kW if the
salvage value at 15 yrs is 20% of invested amount at a rate of 5% compounded annually using:

a. SLM
b. DVM
c. SFM