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A company bought a machine for BD300,000 which has a useful life of 7 years and can be sold for BD30,000 at the end of

  1. A company bought a machine for BD300,000 which has a useful life of 7 years and can be sold for BD30,000 at the end of its useful life. Determine the
    1. Depreciation schedules, dn
    2. Accumulated depreciation, Dn
    3. Book value, Cn

using straight line method and double declining balance method. Generate the plots using Microsoft Excel and show the specific formula in the Excel to solve the problems.

  1. Repeat problem #1 if there is an installation cost of BD20,000.
  1. Repeat problem #1 if there is a dismantling cost of BD5,000.
  1. The coupon interest rate issued by Jordan Company on a 10-year bond is 10%, with a par value of BD1,000 and pays interest semi-annually. The required annual return expected by the company is 12%. Determine the bonds value?

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