Plant-Economics Mcqs for Chemical

Q.  A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs _____________?

a. 40,096
b. 43,196
c. 53,196
d. 60,196


ANSWER: See Answer
 
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