Question
A machine has a first cost of 500.000 and a salvage value of 93.500 after n years. The book value at the end of 3rd
A machine has a first cost of 500.000 and a salvage value of 93.500 after n years. The book value at the end of 3rd year is calculated as 364.500 . Find the value of n? a) Assuming that straight line depreciation method is used. b) Assuming that double declining balance depreciation method is used. c) A car has a first cost of 240.000 and a salvage value of 81.250 after 8 years. What is the depreciation in the 5th (D5=?) year if you switch between depreciation methods (start with double declining balance and switch to straight line when necessary)? (DDB formulas: Dt=dB(1 d)t-1 =dBVt-1 and BVt=B(1 d)t )
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