Below you are given the annual return on Berkshire Hathaway stock for the past 5 years 

2016 23.4%

2017 21.9%

2018 2.8%

2019 11.0%

2020 2.4%

Given this data, calculate the Arithmetic and Geometric Mean returns for this five-year period. Show your work.

Arithmetic Mean = _________________

Geometric Mean = _________________

(b) You purchase a piece of capital equipment for $100,000 and a projected salvage value of $10,000 at the end of its 5-year useful like (and this concurs with the MACRS schedule). Show your work.

What would be the book value of the capital after year 3 under a straight-line depreciation schedule?

BV = _______________________________

What would be the book value of the capital after year 3 under a MACRS depreciation schedule?

BV = ______________________________