Economic of power generation 1

 Question = A transformer costing RS 90,000 has a useful life of  20 years . Determine the annual depreciation ( मूल्यहास ) charge ( RS )using straight line mathod . ? Assume the salvage value of the equipment to be 10,000 .

Solution = is given ,

» Initial cost of transformer , P = 90,000 RS , 

» useful life n = 20 years , 

» salvage value , s = 10,000 rs , 

» annual depreciation charge = ( p- s )÷ n , 

» So , ( 90,000 - 10,000 ) ÷ 20 , = 80,000 ÷ 20 , = 4000 , RS answer ✓

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