Question
Chapman Machine Shop is considering a four-year project to improve its production efficiency. The new machine costs $390,000 and falls in the MACRS five-year class.
Chapman Machine Shop is considering a four-year project to improve its production efficiency. The new machine costs $390,000 and falls in the MACRS five-year class. The MACRS rates are .2, .32, .192, .1152, .1152, and .0576 for Years 1 to 6, respectively. What is the annual depreciation of the machine at the end of Year 3?
A) $67,392
B) $124,800
C) $44,928
D) $78,000
E) $74,880
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
