7-57. A bowling alley costs $500,000 and has a useful life of 10 years. Its estimated MV...

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7-57. A bowling alley costs $500,000 and has a useful life of 10 years. Its estimated MV at the end of year 10 is $20,000. Create a spreadsheet that calculates the depreciation for years 1–10 using (i) the SL method, (ii) the 200% DB method, and (iii) the MACRS method (GDS class life = 10 years). For each method, compute the PW of the depreciation deductions (at EOY 0). The MARR is 10% per year. If a large PW is desirable, what do you conclude regarding which method is preferred? (7.5)

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Engineering Economy

ISBN: 9780134870069

17th Edition

Authors: William Sullivan, Elin Wicks, C Koelling

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