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A company is considering buying a new machine. Two different models are available on the market. MARR is 8%. a. Assuming sum-of-years digits depreciation, what
A company is considering buying a new machine. Two different models are available on the market. MARR is 8%. a. Assuming sum-of-years digits depreciation, what book value will Model -I have after two years? b. Assuming double declining balance depreciation, what book value will Model- II have after three years? c. What salvage value (S) must Model -I have after 20 years in order for the equivalent uniform annual cost to equal $27,000
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