Guess which depreciation method will have the lower 10%-per-year PW of taxes between the following methods over

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Guess which depreciation method will have the lower 10%-per-year PW of taxes between the following methods over a 6-year study period: P = $100, S = 0, and GI-OE = $50, and T_e = 30%.

Verify your answer via spreadsheet.

I. Straight line with n = 4 years
II. MACRS with n = 5 years
III. DDB with n = 6 years

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Dec 24, 2018 05:04 AM

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Guess which depreciation method will have the lower 10%-per-year PW of taxes between the following methods over

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Did you guess correctly that SL with n 4 years will be slightly lower in PW of taxes The shorter rec...View the full answer

Engineering Economy

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