Problem Statement: CE Board November 1995
A machine costing P720,000 is estimated to have a book value of P40,545.73 when retired at the end of 10 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the annual rate of depreciation in %?
- A. 25%
- B. 26%
- C. 27%
- D. 28%
The annual rate of depreciation of the machine is 25%.
Latest Problem Solving in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)
More Questions in: Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)