1 You purchase a truck for $39,000 and will sell it for $3032 54 after 5 years Use Double Declining Balance (DDB) depreciation and develop a schedule for book value each year (see attached table) Year Depreciation Sum of Depreciation Book Value 0 1 2 3 4 5 For DDB, dtn (2 N) (Purchase Price minus depreciation to date), where N number of years 2 The truck in Problem 1 generates $15,000 annually in benefits before taxes If tax is 40 , construct a table to get after tax cash flows (see attached table) Problem 2 Year Income Depreciation Taxable Income Tax Required After Tax Cash Flow 0 1 2 3 4 5

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1  You purchase a truck for $39,000 and will sell it for $3032 54 after 5 years  Use Double Declining Balance (DDB) depreciation and develop a schedule for book value each year  (see attached table) Year Depreciation Sum of Depreciation Book Value 0 1 2 3 4 5 For DDB, dtn (2 N) (Purchase Price minus depreciation to date), where  N number of years  2  The truck in Problem 1 generates $15,000 annually in benefits before taxes  If tax is 40 , construct a table to get after tax cash flows  (see attached table) Problem  2 Year Income Depreciation Taxable Income Tax Required After Tax Cash Flow 0 1 2 3 4 5

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1. You purchase a truck for $39,000 and will sell it for $3032.54 after 5 years. Use Double Declining Balance (DDB) depreciation and develop a

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