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A VOM is currently priced at P 400. If its price is expected to decrease by 10% annually due to obsolescence, what will be the price after 5 years?

Engineering Economy MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Engineering Economycivil-engineering-mcqs › engineering-economy
Published
21 Jan 2019
Last updated
28 May 2026

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Explanation

The price after 5 years is calculated by applying a 10% annual reduction over 5 years: Price = 400 × (1 - 0.10)^5 = 400 × 0.59049 = P 236.20.

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