A wood products company has decided to purchase new logging equipment for $100,000 with a trade-in of

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A wood products company has decided to purchase new logging equipment for $100,000 with a trade-in of its old equipment. The old equipment has a BV of $10,000 at the time of the trade-in. The new equipment will be kept for 10 years before being sold. Its estimated SV at the time is expected to be $5,000. Using the SL method, the BV at the end of the depreciable life is

(a) $11,811

(b) $10,000

(c) $5,000

(d) $0

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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