Problem Statement: ECE Board November 1998
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.
- A. 7 years
- B. 8 years
- C. 9 years
- D. 10 years
The length of service life necessary is 9 years.
This content is for Premium Member. Tired of ads?
Subscribe To Unlock The Content! and Remove Ads.
More Questions in: Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)
Also Questions in: Engineering Economics (Simple & Compound Interest)