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1 (30 points) Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years and a salvage value of
1 (30 points) Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years and a salvage value of $500 at the end of its useful life. Assume that the interest rate per year is 10%. (a) (6 points) Calculate the depreciation for year 4, using DDB. $3456 O $3640 $3820 O $4070 (b) (8 pts) Calculate the present worth (PW) of the depreciation, using the DDB depreciation. $29455 $30920 $32115 O $34180 Question 3 (c) (8 pts) Calculate the present worth of the depreciation, using the straight line depreciation. O $27,430 O $28,570 $29,950 0 $31,880 (d) (8 pts) Calculate the present worth of the depreciation, using the SOYD depreciation. O $28,640 $29.890 O $31,840 O $32,780
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