What is the book value of a $3000 computer after 5 years ?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What is the book value of a $3000 computer after 5 years ?

Using the MACRS rates from the following table,
what is the book value of a $3,000 computer after 5
years?
Year MACRS Rate
12345
20.0 %
32.0 %
19.2%
11.52 %
11.52 %
book value = [?]
Round to the nearest hundredth.
Transcribed Image Text:Using the MACRS rates from the following table, what is the book value of a $3,000 computer after 5 years? Year MACRS Rate 12345 20.0 % 32.0 % 19.2% 11.52 % 11.52 % book value = [?] Round to the nearest hundredth.
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