ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 11, Problem 3P
To determine

To calculate: The depreciation schedule for $375000 worth of equipment.

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ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 7% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method. Draw the cashflow if necessary
Office equipment whose initial cost is $100,000 has an estimated actual life of 6 years, with an estimated salvage value of $10,000. Prepare tables listing the annual costs of depreciation and the book value at the end of each 6 years, based on straight-line, sum-of-years’-digits, and MACRS depreciation. Please use spreadsheet functions for the depreciation methods.
A touch-sensitive assembly robot that costs $300,000 had a depreciable life of 5 years with an expected $50,000 salvage value when purchased 3 years ago. Using MACRS depreciation, determine any DR, CG, or CL if the company sold the robot after 3 years for $80,000.
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