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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

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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 $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 $3640 O $3820 O $4070 (b) (8 pts) Calculate the present worth (PW) of the depreciation, using the DDB depreciation. O $29455 $30920 $32115 O $34180 (c) (8 pts) Calculate the present worth of the depreciation, using the straight line depreciation. $27.430 $28.570 O $29.950 $31,880 (d) (8 pts) Calculate the present worth of the depreciation, using the SOYD depreciation. O $28,640 $29,890 $31.840 O $32,780

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