6104Chemical EngineeringMedium
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 ________?
A43,196
B40,096
C53,196
D60,196
Correct answer
D. 60,196
Explanation
The correct answer is 60,196.