Solution: Find the annual rate of depreciation of the machine in percentage

(Last Updated On: December 10, 2017)

Problem Statement: CE Board May 1996

A machine costing P45,000 is estimated to have a book value of P4,350 when retired at the end of 6 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the annual rate of depreciation in %?

• A. 32.50%
• B. 32.25%
• C. 32.00%
• D. 32.75%

Problem Answer:

The annual rate of depreciation of the machine is 32.25%.

Solution:

Latest Problem Solving in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

div.feedburnerFeedBlock ul li {background: #E2F0FD;
list-style-type: none;
margin:0 0 5px 0px;
padding:5px 5px 5px 10px !important;
border: 1px solid #0080ff;
border-radius:8px;
-moz-border-radius:8px;
-webkit-border-radius:8px;

}

div.feedburnerFeedBlock ul li:hover {
background:#ffffff;
}

div.feedburnerFeedBlock ul li a{
color:#ffffff;
text-decoration:none;
}

div.feedburnerFeedBlock ul li a:hover {
text-decoration: underline;
color: #000000;
}
div #creditfooter{
display: none;
}

More Questions in: Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

Online Questions and Answers in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)