Question
2. An investment of $200,000 in a new machine will generate income of $40,000 per year for 4 years after which the machine is to
2. An investment of $200,000 in a new machine will generate income of $40,000 per year for 4 years after which the machine is to be sold for an estimated $75,000. Pick the correct equation to determine the unknown rate of return
3. A machine has an initial cost of $25,000, annual operating cost of $4,500 and a salvage value of $5,000. The machine has a recovery period of 5 years. If Straight Line depreciation is used, what fraction of the initial $25,000 will be cumulatively depreciated by the end of year 3? Pick the choice closest to your answer
4. A machine has an initial cost of $25,000, annual operating cost of $4,500 and a salvage value of $5,000. The machine has a recovery period of 5 years. If Double Declining Balance depreciation is used, what is the Book Value at the end of year 2?
5. A machine has an initial cost of $25,000, annual operating cost of $4,500 and a salvage value of $5,000. The machine has a recovery period of 5 years. Using MACRS depreciation, what is the depreciation in year 3?
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