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3) A company is considering investing $2,000,000 in equipment used in the manufacture of carpets that is expected to have a useful life of nine

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3) A company is considering investing $2,000,000 in equipment used in the manufacture of carpets that is expected to have a useful life of nine years and a salvage value at the end of nine years of $50,000. This equipment will allow the company to save $660,000 per year through reduced labor costs. Determine depreciation in year three and book value end of year four using: a) Straight Line method b) 150% declining balance method c) GDS method d) ADS method

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