Engineering Board Exam Reviewer · Equivalent Uniform Annual Cost · medium
A machine costs P200,000, lasts 8 years, and has a salvage value of P40,000. Find its annual capital recovery cost at 12% interest.
- P40,260.57
- P37,008.45
- P32,208.45
- P35,460.57
Answer
B. P37,008.45
Solution
CR=(P-S)(A/P,i,n)+Si=160,000(0.201303)+40,000(0.12)=P37,008.45.
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