- The purchase of a motor for P6000 and a generator for P4000 will allow the company to produce its own energy. The configuration can be assembled for P500. The service will operate for 1600 hours per year for 10 years. The maintenance cost is P300 per year, and cost to operate is PO.85 per hour for fuel and related cost. Using straight line depreciation, what is the annual cost for the operation? There is a P400 salvage value for the system at the end of 10 year. c. P2,630 d. P2,670 a. P2,710 b. P2,480

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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31. The purchase of a motor for P6000 and a generator
for P4000 will allow the company to produce its own
energy. The configuration can be assembled for
P500. The service will operate for 1600 hours per
year for 10 years. The maintenance cost is P300 per
year, and cost to operate is PO.85 per hour for fuel
and related cost. Using straight line depreciation,
what is the annual cost for the operation? There is a
P400 salvage value for the system at the end of 10
year.
a. P2,710
c. P2,630
b. P2,480
d. P2,670
Transcribed Image Text:31. The purchase of a motor for P6000 and a generator for P4000 will allow the company to produce its own energy. The configuration can be assembled for P500. The service will operate for 1600 hours per year for 10 years. The maintenance cost is P300 per year, and cost to operate is PO.85 per hour for fuel and related cost. Using straight line depreciation, what is the annual cost for the operation? There is a P400 salvage value for the system at the end of 10 year. a. P2,710 c. P2,630 b. P2,480 d. P2,670
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