17. Business A purchases manufacturing equipment that costs $250,000. Economic life is estimated as 5 years with a salvage value of $15,000. This company chooses the accelerated cost recovery method for depreciation Business B, in competition with company A, buys the same equipment at identical cost. The management of company B uses straight-line depreciation. Determine the yearly depreciation charges and the end-of-year book value for companies A and 8. Discuss the two methods under this competitive situation, and comment on the importance of the depreciation for cost estimating. Use the following MACR rate method 20% 1st 32% 2nd 24% 3rd 16% 4th 8% Sih