A factory company has 5 years to prepare for relocating in another place. The equipment for loading dock is P150,000.00, the salvage value of the equipment after 5 years id P10,000. The company’s rate of return on the money is 10%. What is the capital rate per year?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...
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A factory company has 5 years to prepare for relocating in another place. The equipment for loading dock is P150,000.00, the salvage value of the equipment after 5 years id P10,000. The company’s rate of return on the money is 10%. What is the capital rate per year? 

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