1. a. A company with a MARE policy of 12% is trying to estimate the initial cost ofa piece of machinery that they bought several years ago aer some of the company's documents were ooded during a storm. The machine is classied as a 10-year MACRS property and has a book value of24,033 at the end of its 31h year in service. If the company estimates the salvage value of this property as $20,000 aer its useJl life, what is the initial cost of the equipment using the MACRS depreciation method? 1:. An actuarial scientist (the appraiser) with an insurance company in GA belieVes that the best estimate for the hook value of a car totaled in an accident that has gone through a years of depreciation is to use Weighted values from the MARCS and the Straight Line (SL) depreciation methods. His 1weighted model is given by: =W EV" 11+ 2 Where: HVn is his calculated Book value after year 11. Elam is the Book Value after 11 years from the MACRS and HVngL is the Book Value after n years from the Straight-Line method. Right alter its third year in operation, a vehicle that was initially purchased at $55,000 was involved in an accident and was totaled. What will be the appraiser's book value if he assumes a salvage value of $5,000 after ve years