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3D Wonderland, a local 3D Printing service provider, is acquiring a new FDM-based Print Farm comprising 12 Prusa MK3s printers. The initial cost of this
3D Wonderland, a local 3D Printing service provider, is acquiring a new FDM-based Print Farm comprising 12 Prusa MK3s printers. The initial cost of this purchase is $10,500, including all 12 printers, accessories, shipping, and installation. The useful life of this Print Farm is expected to be four years. The SV for depreciation purposes equals 10% of the initial cost. 1. What is the BV of the Print Farm at the end of year two if the SL depreciation method is used? (10 points) 2. What is the amount of depreciation for the Print Farm in the third year if the 200\% DB method is used? (10 points) 3. If the expected service life for the Print Farm is 60,000 hours, what is the BV of the Print Farm at the end of year three, assuming the hours of usage were equally spread over the years? (10 points) 4. Suppose that after depreciating the Print Farm for two years with the SL method, the company decides to switch to the 150% DB method for the remainder of its life (e.g., the remaining two years). What is its BV at the end of the third year? (20 points extra credit)
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