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Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market. This patent does not have a salvage value at the end of its 5-year useful life. You are tasked with computing the depreciation schedule and book value for the patent using double declining balance with a switch to the straight-line method (if necessary). Question 7 Part A: Choose the correct formula for the Double-Declining Balance depreciation method. O Depreciation, = Bn-1*(2/N) where N = the useful life of the project O Depreciation = (Bn-1) / N where N = the useful life of the project O Depreciation = (Initial Cost - Salvage Value) / N where N = the useful life of the project O Depreciation, = (Initial Cost - Salvage Value) / (2*N) where N = the useful life of the projectYou are considering a large CNC equipment purchase. You will need an initial deposit of $165,000. The annual revenues expected to come from the use of the CNC equipment are $85,000 starting in year 1 increasing by $4,000 each year (i.e. $85,000 in year 1, $89,000 in year 2, etc). Annual operating and maintenance costs are expected to be $35,000 every year starting in year 1. The equipment is expected to last for 15 years. What is the ROR? Question 6 Part A: Choose the correct Cash Flow Diagram for this scenario from the options below. Option A Option B i = +$4,000 i = +54,000 $85,000 $85,000 0 T /\\ I 0 T I 1 $ 2 V $16 1 $ 2 VA $15 '-535000 $35,000 $165000 $165,000 Option C Option D $89,000 585,00 I o 1 $ 2 V\" $16 ' -$35000 $165,000 -$165000 _$CANVAS COURSE REFERENCE$ZIe ref1g14751ca22793a3e949a1220296c560b11download? download frd=1 O Option D 0 Option B O Option A 0 Option C Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market. This patent does not have a salvage value at the end of its 5-year useful life. You are tasked with computing the depreciation schedule and book value for the patent using double declining balance with a switch to SL method (if necessary). Question 1 Part B: Complete the following table to show the depreciation schedule. If it is necessary to switch from DDB to SL depreciation, when the switch occurs, only enter the value of the SL depreciation and enter 0 for the DDB depreciation (e.g. when/if the switch occurs, DDB: O and SL: X). Enter your answers in the form 1234 (enter 0 for blank table cells). NO DECIMALS You are considering a large CNC equipment purchase. You will need an initial deposit of $165,000. The annual revenues expected to come from the use of the CNC equipment are $85,000 starting in year 1 increasing by $4,000 each year (i.e. $85,000 in year 1, $89,000 in year 2, etc.). Annual operating and maintenance costs are expected to be $35,000 every year starting in year 1. The equipment is expected to last for 15 years. What is the ROR? Question 6 Part B: Choose the correct Function Notation for this scenario. -165,000 = 50,000(P/A, i*, 16) + 4,000(P/G, 1*, 15) 165,000 = 50,000(P/A, 4,000, 15) 165,000 = 50,000(P/A, i*, 15) + 4,000(P/G, i*, 15) 0000 -165,000 = 50,000(P/A, 4,000, 16) Bn-1 (enter either DDB (enter either SL (enter either the | DDB or SL? (enter |Dn (enter either the Bn (enter either the the number with number with no DDB, SL, or O if Year the number with number with no number with no no decimals, or 0 if | no decimals, or 0 if | decimals, or O if neither applies decimals, or O if decimals, or O if blank) blank) blank) below) blank) blank) 0 1 2 3 4 5You are considering a large CNC equipment purchase. You will need an initial deposit of $165,000. The annual revenues expected to come from the use of the CNC equipment are $85,000 starting in year 1 increasing by $4,000 each year (i.e. $85,000 in year 1, $89,000 in year 2, etc.). Annual operating and maintenance costs are expected to be $35,000 every year starting in year 1. The equipment is expected to last for 15 years. What is the RO R? Question 6 Part C: Provide the ROR for the purchase. Enter your answer in the form 12.34 (for example, 12.34% would be entered as 12.34) You are considering a large CNC equipment purchase. You will need an initial deposit of $165,000. The annual revenues expected to come from the use of the CNC equipment are $85,000 starting in year 1 increasing by $4,000 each year (i.e. $85,000 in year 1, $89,000 in year 2, etc). Annual operating and maintenance costs are expected to be $35,000 every year starting in year 1. The equipment is expected to last for 15 years. What is the ROR? Question 6 Part D: Fill in the blank for the following statement. In order to choose to invest in this project, the MARR needs to be _____________ compared to the calculated ROR. 0 less than 0 equal to O greater than