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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