A company bought equipment worth $53,000 and paid $1,500 for freight and delivery charges to the site. The equipment has a useful life of 10 years with a salvage value of $5,000 at the end of life. Assuming interest is 6%, determine the annual depreciation cost by sinking fund method. a. $ 3,748.65 b. $3,755.46 c. $ 3,724. 83 d. $3,713.92
A company bought equipment worth $53,000 and paid $1,500 for freight and delivery charges to the site. The equipment has a useful life of 10 years with a salvage value of $5,000 at the end of life. Assuming interest is 6%, determine the annual depreciation cost by sinking fund method. a. $ 3,748.65 b. $3,755.46 c. $ 3,724. 83 d. $3,713.92
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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A company bought equipment worth $53,000 and paid $1,500 for freight and delivery charges to the site. The equipment has a useful life of 10 years with a salvage value of $5,000 at the end of life. Assuming interest is 6%, determine the annual depreciation cost by sinking fund method.
a. $ 3,748.65
b. $3,755.46
c. $ 3,724. 83
d. $3,713.92
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