Answer to Question #102149 in Microeconomics for vera maloku

Question #102149
The company has purchased a new machine. It’s purchase price is
50.000 EUR.Transportation costs amounted to 8.000 EUR, the
installation costs were aditional 2.000 EUR. It is estimated a useful life
of the machine of 5 years. Please, calculate the annual depreciation with
the straight-line depreciation method!
1
Expert's answer
2020-02-04T08:49:03-0500

Depreciation per annum," Dpa = \\frac{\\text{Cost}\u2212\u2002\\text{Residual Value}}{\\text{Useful Life}}"

"Dpa=\\frac{60000- 50000}{5}"

Dpa= 2000EUR




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