1. If you were to use Double Declining Balance depreciation for an asset which costs $100,000 and had an estimated salvage value of $5,000 and an 8-year useful life, in which year would you switch to straight line depreciation? 2. We are considering the purchase of a minicomputer at a cost of $10,500, with an estimated salvage value of $500 and a projected useful life of four years. Interest is 10%. Determine a. depreciation charges using straight line method b. depreciation charges using double declining balance method c. depreciation charges using MACRS method d. which depreciation method should be used 3, A company, whose earnings put them in the 35% tax schedule, is considering purchasing a piece of equipment for $25,000. The equipment should be depreciated using straight line depreciation, has a useful life of 4 years and a salvage value of $5,000. It is estimated that the equipment will increase the company's earnings by $7,500 for each of the 4 years. Should the equipment be purchased? Use an after tax interest rate of 10%