Refer to Exhibit 13–3. Prepare a similar table of the changing ROI assuming the following accelerated depreciation schedule. Assume the same income before depreciation as shown in Exhibit 13–3. (If there is a loss, leave the ROI column blank.)

Required:
1. How does your table differ from the one in Exhibit 13–3? Why?
2. What are the implications of the ROI pattern in your table?

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Year Depreciation 1. $200,000 2............ 120,000 3 72,000 4 5 ............ Total....... 54,000 54,000 $500,000