Past Boards

Deduction and Bonus Depreciation [Eschenbach Page 363]

CELE April 2024 Northern Gold Mining bought a mine site with 500,000 tons of recoverable ore for $800,000. Of this
total, $50,000 is the land’s estimated value. If 40,000 tons are processed this year, what is the cost depletion? The revenue
from 5500 ounces of gold is $1.8M, and the expenses (other than depletion) are $1.6M. What is the percentage depletion,
and should cost or percentage depletion be claimed?
A. The $60,000 cost depletion should be claimed
B. The $100,000 percentage depletion should be claimed
C. The $60,000 percentage depletion should be claimed
D. The $100,000 cost depletion should be claimed

Ordinary Interest [Runde 582]

CELE April 2024 The U.S. government borrows money by selling Treasury bills. Treasury bills are discounted notes
issued by the U.S. government. On May 6, 2003, Kris purchased a 180-day, $4000 U.S. Treasury bill at a 4.34% discount.
On the date of maturity, Kris will receive $4000. What is the actual rate of interest of the Treasury bill?
A. 0.0111
B. 0.0333
C. 0.0444
D. 0.0222

B/C Ratio [Goswami]

CELE April 2024 A local municipality must make a determination about the feasibility of repairing a bridge. The
estimated useful life of the bridge is 25 years. The MARR is 8%. The relevant cost estimates are shown below. All costs
are shown in thousands of dollars.
Existing Repair
Initial Cost 0 75
Annual Cost (Maintenance)
Years 1-15 10 3
Years 16-25 14 4
Salvage Value 5 20
The bene]it-cost ratio of making repairs is most nearly:
A. 0.90
B. 0.95
C. 1.05
D. 1.11

Present Worth Indexes [Eschenbach Page 233]

CELE Nov 2023 Heavy Metal Stamping is evaluating a project with a ]irst cost of $150,000, no salvage value, annual
savings of $30,000, and a life of 10 years. Using an interest rate of 10%, calculate the PW index.
A.
B.
C.
D. 1.23

[Canada Page 147]

CELE April 2023 Suppose that a certain savings is expected to be $10M at the end of year 3 and to increase $1M each
year until the end of year 7. If the minimum attractive rate of return (MARR) is 20%, what is the present equivalent (at
the beginning of year 1) and the future equivalent (at the end of year 7).
A.
B.
C. $24.175, $86.62
D.

Present Worth
CELE April 2023 An amortization having a rate of interest of 12% annually requires that it must be paid an equal amount
of $2000 per year starting at the 3rd year period. What is the present worth if it should be paid for a period of 15 years?
A.
B.
C.
D. $10,241.63

Uniform Series
CELE April 2023 A loan of $35000 having an annual rate of interest of 8.15% is to be paid an equal amount every month
for 60 months. If he pays instead for 24 months only to clear his account, how much will he save?
A. $18457.81
B.
C.
D.

Public-Sector Engineering Economy [Eschenbach Page 408]

CELE Nov 2019 and Nov 2022 Calculate the bene]it/cost ratio for a highway project with the following bene]its and
costs. The project life is 40 years, the interest rate is 10%, and the project’s right-of-way is worth $5M in 40 years.
$20M Construction cost (includes acquiring right-of-way)
350K Annual maintenance
3M Repaving every 8 years
1M Annual value of lives saved (1 per year)
$20 . 25 hours 250,000 trips
1.25M Time savings for commercial traf]ic ! × × 5
hour trip year
$5 . 25 hours 800,000 trips
1M Time savings for commuter and recreational traf]ic ! × × 5
hour trip year

A.
B.
C. 1.23
D.

InUlation [Eschenbach Page 436]

CELE Nov 2022 An engineering consulting ]irm purchases accounting services for $20,000 per year. These costs are
expected to in]late at 6% per year, while the economy’s in]lation rate, f, is 4%. What is the in]lation-adjusted cost of these
services for the ]ifth year?
A.
B.
C.
D. $21,649

[Canada Page 109]

CELE Nov 2022 Suppose that we need a slightly re]ined estimate of the cost of a house consisting of 1,500 ft2, two
porches, and a garage. Using unit factors of $40/ft2, $2,000/porch, and $3,000/garage, we can calculate the estimate as
A.
B. $67,000
C.
D.

Public-Sector Engineering Economy [Eschenbach Page 418]

CELE Nov 2019 and Nov 2022 Data over the last 5 years indicate that for each fatality, there are 40 nonfatal injury
accidents ($15,000 present cost each) and 300 property damage accidents ($2000 present cost each). What is the
breakeven value of a statistical life (VSL) needed to justify a highway project if i is 8%?
The death rate on a particular three-lane road is 8 per 100 million vehicle-miles. Adding a lane would reduce this to 5
per 100 million, and other accidents would be reduced proportionately. The lane would cost $1.5M per mile to build, and
annual maintenance would be 3% of the ]irst cost. Assume that the lane would last 40 years. The road carries 10,000
vehicles per day.
A.
B. $359.8K
C.
D.

InUlation
CELE May 2022 In 1991, the average cost of a house is ₱1,000,000. If the annual in]lation rate is 6%, what is the value of
a house of the same model in 1996?
A. ₱1,338,226
B.
C.
D.

Equivalence
CELE Nov 2019 and May 2022 A contractor can buy dump trucks for ₱800,000 each (surplus) or rent then for ₱1,189
per truck per day. The truck has a salvage value of ₱100,000 at the end of its useful life of 5 years. Annual cost of
maintenance is ₱20,000. If money is worth 14% per annum, determine the number of days per year that a truck must be
used to warrant the purchase of the truck.
A.
B. 200
C.
D.

[Newnan Page 564]

CELE May 2022 The maintenance on a machine is expected to be $155 at the end of the ]irst year, and it is expected to
increase $35 each year for the following seven years. What sum of money should be set aside now to pay the maintenance
for the eight-year period? Assume 6 percent interest.
A.
B.
C.
D. $1657
 Optimal Defenders [Eschenbach | Page 296]
CELE Nov 2021 Four years ago, the communications system for Conglomerate Engineering cost $50,000. Its current
salvage value is $26,000, which will decline as follows over the next 4 years: $20,000, $16,250, $14,000, and $12,500.
The O&M costs will be $6000 this year, and these costs will increase by $2000 per year. At Conglomerate’s interest rate
of 10%, the best challenger has an EAC of $14,200. When should the communications system be replaced?
A. The defender’s lowest EAC is less than $14,500, which is the challenger’s EAC, the communication’s system should not
be replaced yet.
B. The defender’s lowest EAC is less than $14,250, which is the challenger’s EAC, the communication’s system should not
be replaced yet.
C. The defender’s lowest EAC is less than $14,600, which is the challenger’s EAC, the communication’s system should not
be replaced yet.
D. The defender’s lowest EAC is less than $14,200, which is the challenger’s EAC, the communication’s system should not
be replaced yet.

[Canada Page 125]

CELE Nov 2021 The XYZ company has decided to build a new plant that is very similar to an existing plant. The plant
will be used to produce 5,000 units of the part shown in Fig. 5-9. The loss due to scrap is expected to be 2.5%. The
company that sells the raw materials to the XYZ company will buy back any scrap or waste for $0.95 per cubic inch. The
recovery cost is $0.20 per cubic inch. Approximately 15% of the waste is not recovered for resale. Historical data show
that on January 1, 1987, the cost of this material was $1.45 per cubic inch, in a quantity of 8,000 inches? On March 1,
1988, the unit cost of 3,000 inches? was $1.89 per cubic inch. For the past 4 years we will assume that in]lation rates
have remained stable at an annual rate of 12% and that the date when the material is to be purchased is February 1,
1990.
The approximate capital cost of the existing facility which was purchased recently was $12,000, and its production
capacity is 20 units per day. It is desirable for the future facility to have a production capacity of 30 units per day. Capital
cost can be estimated using Eq. 5-27 with J, = 1.12, I, = 1.10, and B = 2/3. Studies were done at the existing facility showing
that approximately 0.35 hr is necessary to produce each unit. This time was achieved over a production of 3,500 units
and production has followed an 85% learning curve. Labor costs $15 per hour, including bene]its. The parts are produced
in lot quantities of 25 and the machine setup time is 1 hr. Part of the setup involves changing the cutting tool. The cost of
the tool is $20. Factory burden is 40% of direct material. Estimate the manufacturing cost from the information given.
A. $69,840
B. $69,804
C. $69,408
D. $69,048

Annuity
CELE Nov 2021 An electric replacement sewage pump is being considered for purchase; it is capable of providing 200
hp. The pertinent data are as follows:
Cost = $3200
Maintenance = $50
Electric ef]iciency = 0.85
Life expectancy = 14 years
The pump is used for 400 hours per year and the cost of electricity is $0.04 per kilowatt-hour (1 horsepower = 0.746
kW). Assuming the pump will have no salvage value, what will be the monthly cost?
A. $304.44
B. $520.36
C. $238.20
D. $425.10

B/C Ratio [Eschenbach Page 236]

CELE Nov 2019 Rosenberg Engineering has of]ices in northern California, where a heat pump can be used for cooling in
the summer and heating in the winter. Replacing the current system will cost $1500 in May and $500 in June. Starting in
July, it will save $200 per month for the summer months (June–August), $100 for the fall and spring months, and $150
for the winter months (November–March). What is the payback period for the heat pump?
A.
B.
C. 16 months
D.

Equivalence [Eschenbach Page 57]

CELE Nov 2019 The engineering group of Baker Designs must decide whether to spend $90K (K for thousands) on a
new project. This project will cost $5K per year for operations, and it will increase revenues by $20K annually. Both the
costs and the revenues will continue for 10 years. How much interest has incurred in this project?
A. 10.56%
B.
C.
D.

EUAC [Schaum’s Page 68]

CELE May 2019 A machine costs $40000 to purchase and $10000 per year to operate. The machine has no salvage value,
and a 10-year life. If i = 10% per year, compounded annually, what is the equivalent uniform annual cost of the machine?
A.
B.
C.
D. $16 510

Return of Investment
CELE May 2019 A man bought a government bond which costs ₱1M and will pay ₱50,000 interest each year for 20 years.
The bond will mature at the end of 20 years and he will receive the original ₱1M. If there is 2% annual in]lation during
this period, what rate of return will the investor receive after considering the effect of in]lation?
A.
B. 2.94%
C.
D.

Return of Investment
CELE May 2019 A proposed manufacturing plant will require a ]ixed capital investment of ₱8M and an estimated
working capital of ₱1.5M. The annual pro]it is ₱2M and the annual depreciation is to be 8% of the ]ixed capital investment.
Compute the rate of return of the total investment.
A.
B. 14.32%
C.
D.

Capitalized Cost
CELE May 2019 An electric rebar bender has a ]irst cost of ₱324,000 and a salvage value of ₱50,000 at the end of its life
for 4 years. Money is worth 6% annually. If there is no salvage value and the annual maintenance cost is ₱18,000, ]ind
the capitalized cost of perpetual service.
A.
B.
C. ₱624,000
D.

Equivalence [Schaum’s Page 60]

CELE May 2019 A new corporate bond is being offered in the market for $930. The bond has a face value of $1000 and
matures in 10 years. The issuing corporation promises to pay $70 in interest every year. What is the company's cost of
the capital raised through this bond issue if the stockbroker's fee is $15 per bond sold?
A.
B.
C.
D. 8.29%

Depreciation
CELE May 2019 A machine was purchased at an original cost of ₱400,000 with a salvage value of ₱20,000. Life of this
machine is expected to last for 6 years. It was used for 4000 hours, in the ]irst year, 6000 hours, in the second year, and
8000 hours, in the third year. The machine is expected to last for 38000 hours in the period of 6 years. Which of the
following gives the depreciation at the end of the second year?
A.
B. ₱60,000
C.
D.

Mutually Exclusive Alternatives [Eschenbach Page 253]

CELE May 2019 HDP Development owns the last vacant parcel in a thriving industrial park. There are three proposals
for developing the property (see table). In each case, HDP builds and maintains the structure and receives income from
it. HDP Development uses an interest rate of 12% and a horizon of 25 years for its analyses. Which proposal is preferred
using a PW criteria?
R&D Lab Instrument Maintenance (IM) Snowboard Manufacturing (SM)
First cost $3.0M $3.3M $4.6M
Annual O&M costs 750K 200K 400K
Annual income 1200K 750K 1100K
Salvage value 1.0M .4M 0.5M

A. R&D Lab
B. Instrument Maintenance
C. Snowboard Manufacturing
D. None of the above
Equipment Replacement and Retirement [Schaum’s Page 106]
CELE May 2019 A plant is considering buying a second-hand machine to use as stand-by equipment. The machine costs
$3000 and has an economic life of 10 years, at which time its salvage value is $600; expected annual operating costs are
$100. Without a stand-by machine, the plant would have to shut down an average of seven days a year at a cost of $50
per day. If the MARR is 10%, is it expedient to buy the stand-by machine?
A.
B.
C.
D. The stand-by machine should not be purchased.

Mutually Exclusive Alternatives [Eschenbach Page 252]

CELE May 2019 The city of Northern Lights is building a new city hall. The civil engineer for the walls and ceiling and
the mechanical engineer for the heating system are evaluating two plans for insulating and heating the building. They
have identi]ied standard construction (SC) and energy-ef]icient construction (EEC) as the two alternatives. Northern
Lights uses an interest rate of 10%, and the new city hall is expected to have a life of 40 years. Using EAC, which alternative
is better?
Standard Construction Energy-Ef]icient Construction
First cost: building $2.45M $2.50M
First cost: furnace 100K 85K
Annual heating cost 10,000 6000
A.
B.
C. The EEC cost is lower, so that is the preferred alternative.
D.

Basic Concepts [Schaum’s Page 10]

CELE Nov 2018 An engineer has received $10000 from his employer for a patent disclosure. He has decided to invest
the money in a 15-year savings certi]icate that pays 8% per year, compounded annually. What will be the ]inal value of
his investment, in terms of today's dollars, if in]lation continues at the rate of 6% per year?
A.
B. $13 236.35
C.
D.

Equivalence [Schaum’s Page 61]

CELE Nov 2018 A mine is for sale. A mining engineer estimates that, at current production levels, the mine will yield an
annual net income of $80000 for 15 years, after which the mineral will be exhausted. If an investor's MARR is 15%, what
is the maximum amount he can bid on this property ?
A.
B. $467,760
C.
D.

Discrete, Periodic Compounding [Schaum’s Page 38]

CELE Nov 2018 An engineer wishes to purchase an $80,000 home by making a down payment of $20000 and borrowing
the remaining $60000, which he will repay on a monthly basis over the next 30 years. If the bank charges interest at the
rate of 9.5% per year, compounded monthly, how much money must the engineer repay each month?
A.
B.
C. $504.51
D.

EUAC [Schaum’s Page 68]

CELE May 2018 An engineer is thinking of starting a part-time consulting business next September 5, on his 40th
birthday. He expects the business will require an initial cash outlay of $5000, to come from his savings, and will cost $500
per year to operate; the business ought to generate $2000 per year in cash receipts. During the 20 years that he expects
to operate the business, he plans to deposit the annual net proceeds in a bank each year, at an interest rate of 8% per
year, compounded annually. When he retires, on his 60th birthday, the engineer expects to invest whatever proceeds plus
interest he then has from the business in a long-term savings plan that pays 10% per year, compounded annually. What
is the maximum amount he could withdraw from the savings plan each year during his retirement and still have the funds
last 15 years?
A.
B.
C.
D. $5960.59

Depreciation
CELE May 2018 The ]irst cost of a machine is ₱1,800,000 with a salvage value of ₱400,000 at the end of its life of 5 yrs.
Determine the total depreciation after 3 years using Sum of the Year’s Digit Method.
A. ₱1,120,000
B.
C.
D.

Depreciation
CELE May 2018
Given:
First cost, FC ₱800,000
Salvage value, SV ₱80,000
Life 5 years
Compute the depreciation on the 3rd year using the modi]ied accelerated cost recovery system method.
A.
B.
C.
D. ₱153,600

Rate of Return
CELE Nov 2017 A ]ixed capital investment of ₱10,000,000 is required for a proposed manufacturing plant and an
estimated working capital of ₱2,000,000. Annual depreciation is estimated to be 10% of the ]ixed capital investment.
Determine the rate of return on the total investment if the annual pro]it is ₱2,500,000.
A. 20.83%
B.
C.
D.

Annual Compounding [Schaum’s Page 26]

CELE Nov 2017 Slick Oil Company is considering the purchase of a new machine that will last 5 years and cost $50000;
maintenance will cost $6000 the ]irst year, decreasing by $1000 each year to $2000 the ]ifth year. If the interest rate is
8% per year, compounded annually, how much money should the company set aside for this machine?
Hint:
(A/P, 8%, 5) = 0.25046
(A/G, 8%. 5) = 1.8465
A.
B.
C. $66,583.49
D.

Equivalence [Schaum’s Page 61]

CELE Nov 2017 How long must a temporary warehouse last to be a desirable investment if it costs $16000 to build, has
annual maintenance and operating costs of $360, provides storage space valued at $3600 per year, and if the company
MARR is 1O%?
A.
B.
C. 15
D.

Equivalence
CELE Nov 2017 Talisay City is considering a new ₱5M street cleaner. The new machine will operate at a savings of
₱60,000 per day compared to the present equipment. Assume MARR is 12%, and the machine life is 10 years with zero
resale value at the time. How many days per year must the machine be used to justify the investment?
A.
B.
C.
D. 15 days

Discrete, Periodic Compounding [Schaum’s Page 47]

CELE May 2017 A savings bank offers long-term savings certi]icates at 7.5% per year, compounded continuously. If a 10-
year certi]icate costs $1000, what will be its value at maturity?
A. $2117
B.
C.
D.

B/C Ratio
CELE May 2017 ₱210,000 was invested on the project that yields annual bene]it of ₱80,000 for 8 years with no salvage
value. Calculate the bene]it-cost ratio if the cost of money is 6%.
A.
B. 2.366
C.
D.

Annuity
CELE May 2017 A man made a time deposit of ₱500,000 with BDO that pays 9% per year, compounded annually.
Compute the maximum withdrawals at the end of each year for 12 years.
Present Worth Factor Sinking Fund Factor Capital Recovery Factor Gradient Uniform Series
(P/F, 9%, 12) (A/F, 9%, 12) (A/P, 9%, 12) (A/G, 9%, 12)
0.3555 0.0497 0.1397 4.491

A. ₱69,850
B.
C.
D.

Present Worth
CELE May 2017 GERTC Corporation invested ₱4 million on an equipment that will save the company ₱1.8 million
annually for 9 years. If the minimum attractive rate of return (MARR) is 12%, what is the present worth index of the
investment?
Gradient Present Worth
Present Worth Factor Compound Amount Factor Capital Recovery Factor
Factor
(P/F, 12%, 9) (F/A, 12%, 9) (A/P, 12%, 9)
(P/G, 12%, 9)
5.3283 14.776 0.1877 8.226
A.
B.
C.
D. 2.398

Gradient
CELE May 2017 The repair costs of copier machine are estimated to be ₱1200 the ]irst year, increasing by ₱300 per year
in the subsequent years. Determine the amount that the of]ice will need to deposit into a bank account, paying 4%
interest to provide for the repair cost for the ]ive years.
Gradient Present Worth
Present Worth Factor Sinking Fund Factor Capital Recovery Factor
Factor
(P/F, 4%, 5) (A/F, 4%, 5) (A/P, 4%, 5)
(A/G, 4%, 5)
4.4518 0.1846 0.2246 8.555
A.
B.
C.
D. ₱7,909

Equivalent Interest
CELE Nov 2016 What is the equivalent interest of money compounded monthly and money at 14% compounded
quarterly?
A.
B.
C. 13.84%
D.

Compound Interest
CELE Nov 2016 How long does it take an investment of ₱200,000 to double if it is invested at 5% interest compounded
quarterly?
A.
B.
C.
D. 14 years

EUAC
CELE Nov 2016 Given the following maintenance cost for a bridge:
End of 5th year = ₱100,000
End of 10th year = ₱200,000
End of 15th year = ₱300,000
What is the equivalent uniform annual cost of these maintenance cost over a 20 year period if money is worth 8%
annually?
A.
B.
C. ₱26,000
D.

Capital Recovery
CELE Nov 2016 An equipment costing ₱50,000 is expected to have a salvage value of ₱5,000 after its 10 years of service.
What is the annual capital recovery amount if invested at 8% annually?
A. ₱7,106
B.
C.
D.

Depreciation
CELE Nov 2016 A machine costing ₱1.8M has a salvage value of ₱300,000 after 5 years. Calculate the depreciation value
(book value) at the end of 3 years using the straight-line method.
A. ₱900,000
B.
C.
D.

Break Even
CELE Nov 2016 A manufacturing company has a production capacity of 600,000 units with an income of ₱720,000. The
company’s ]ixed expense is ₱250,000 and the cost to produce per unit is ₱0.7. Compute the number of units to break
even.
A. 500,000
B.
C.
D.

Compound Interest
CELE May 2016 In 1626 Peter Minuit convinced the Wappinger Indians to sell him Manhattan Island for $24. If the Native
Americans had put the $24 into a bank account paying 5% interest, how much would the investment worth in the year
2000 if interest were compounded monthly?
A. $3,052,428,614
B.
C.
D.

Discrete, Periodic Compounding [Schaum’s Page 37]

CELE May 2016 An engineer has just borrowed $8000 from a local bank, at the rate of 1% per month on the unpaid
balance. His contract states that he must repay the loan in 35 equal monthly installments. How much money must he
repay each month?
A.
B.
C. $272.00
D.

Equivalence [Schaum’s Page 56]

CELE May 2016 ABC Corporation's stock, which currently sells for $50 per share, has been paying a $3 annual dividend
per share and increasing in value at an average rate of 5% per year, over the last 5 years. It is expected that the company's
stock will maintain this performance over the next 5 years. What is the company's cost of the capital raised through the
selling of this stock?
A.
B.
C.
D. 10.48%

EUAC [Schaum’s Page 69]

CELE May 2016 Determine the approximate size of the annual payment needed to retire $70 000 000 in bonds issued
by a city to build a dam. The bonds must be repaid over a 50-year period, and they earn interest at an annual rate of 6%,
compounded annually.
A. ₱3,810,000
B.
C.
D.
 Annual Compounding [Schaum’s Page 25]
CELE May 2016 A father wants to set aside money for his 5-year-old son's future college education. Money can be
deposited in a bank account that pays 8% per year, compounded annually. What equal deposits should be made by the
father, on his son's 6th through 17th birthdays, in order to provide $5000 on the son's 18th, 19th, 20th, and 21st
birthdays?
A.
B.
C.
D. $872.67

B/C Ratio
CELE May 2016 A small entrepreneur invested a capital of ₱90,000 for a buy and sell business. He estimated to have a
gross income of ₱28,000 annually and an operating cost of ₱5,000 annually. It is assumed the business to have a life of
10 years. If the rate of interest is 12% compute the bene]it cost ratio.
A.
B. 1.444
C.
D.

Depreciation
CELE May 2016 An equipment cost ₱480,000 and has a salvage value of 16% of its cost at the end of its life of 36,000
operating hours in a period of 5 years. In the ]irst year of service, it was used for 12,000 hours. If at the end of the second
year, it was used for 15,000 hours ]ind the depreciation at the end of the second year.
A.
B. ₱302,400
C.
D.

Continuous Compounding
CELE Nov 2015 If money is invested at a nominal rate of interest of 9% for a period of 5 years, what is the value of the
compound amount factor if it is compounded continuously?
A.
B.
C. 1.568
D.

Depreciation
CELE Nov 2015 An equipment costing ₱2.1M has a salvage value of ₱840,000 at the end of its economic life. Find the
economic life if using the SOYD method of depreciation, its book value at the end of two years is ₱1,440,000.
A.
B.
C.
D. 6

EUAC
CELE Nov 2015 The following alternatives are to be compared based on 8% interest rate.
Machine A B
First Cost 5,000 10,000
Annual maintenance 500 200
Salvage value 600 1,000
Useful life (years) 5 12
What is the equivalent uniform annual cost (EUAC) of machine A?
A.
B.
C. 1650
D.

Break Even
CELE Nov 2015 A manufacturer makes and sells certain spare part at ₱5.00 per pc. The volume of sales per year is
500,000 units. The ]ixed expense per year is ₱800,000. Compute the cost per unit to break even.
A.
B.
C. ₱3.40
D.

Effective Rate
CELE May 2015 Determine the equivalent effective rate of a money compounded continuously at r = 5%
A. 5.13%
B.
C.
D.

Annuity
CELE May 2015 A businessman wishes to raise ₱1.5 million in ]ive years by investing a ]ixed amount of money every end
of the year for three years. What is the required investment using an interest rate of 8%?
A.
B.
C.
D. ₱396,134

Capitalized Cost
CELE May 2015 Determine the capitalized cost of a large-format printer that has a ]irst cost of ₱1.20 Million and salvage
value after ]ive useful years equal to ₱600,000. The operation and maintenance cost ₱100,000 every after 3 years. Use
interest rate, I = 10.1%.
A. ₱2.47M
B.
C.
D.

Depreciation
CELE May 2015 A machine costing ₱1.5M has a salvage value of ₱600,000 at the end of its economic life. What is the
economic life of this machine if using the sum-of-the-year’s-digit method, its book value at the end of 2 years is estimated
to be ₱870,000?
A. 4
B.
C.
D.

Depreciation
CELE May 2015 An equipment with ]irst cost of ₱1.80 M has a salvage value of ₱300,000 at the end of its economic life
in ]ive years. Using Sum of the Digit Method, what will be its book value on the third year?
A.
B.
C. ₱480,000
D.

Depreciation
CELE May 2015 An equipment with ]irst cost of ₱1.80 M has a salvage value of ₱300,000 at the end of 5 years. Using the
constant percentage method, what is the total depreciation after three years?
A.
B.
C.
D. ₱1,185,691