Engineering Board Exam Reviewer · Equivalent Uniform Annual Cost · easy
A machine costs P60,000, lasts 5 years, and has no salvage value. Find its annual capital recovery cost at 10% interest.
- P15,827.85
- P12,000
- P9,827.85
- P18,928.25
Answer
A. P15,827.85
Solution
A=P(A/P,10%,5)=60,000(0.263797)=P15,827.85.
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