a.Go to http://www.edmunds.com. Search for a target purchase price on the latest years version of a non-luxury car. Assume you bought this car at that price for business use, that it has a residual value of 20% of the purchase price, and that you will own it for 5 years. calculate the depreciation for each year under a straight line depreciation. then, calculate the depreciation using MACRS. create a line graph for each depreciation method. May I please have the answer using excel.

B. Now go to http://www.money-zine.com/Calculators/Auto-Loan-Calculators/Car-Depreciation-Calculator. Assume that its depreciation will be average. What is the amount of the first year's depreciation? What is the total depreciation over the 5 years that you own the car?

c. Compare the different depreciation methods in parts a and b. How do they compare and differ? What do you feel may be the difference between the straight-line method and the online calculator's method of computing depreciation?