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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
- 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
- Depreciation schedules, dn
- Accumulated depreciation, Dn
- 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.
- Repeat problem #1 if there is an installation cost of BD20,000.
- Repeat problem #1 if there is a dismantling cost of BD5,000.
- 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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