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Cisco Systems is purchasing a new bar code - scanning device for its service center in San Francisco. The table that on the right liststhe
Cisco Systems is purchasing a new bar code - scanning device for its service center in San Francisco. The table that on the right liststhe relevant cost items for this purchase. The operatin2 expenses for the new system are $8M00 per year, and the useful life of the system is expected to be four years. The SV for depreciation purposes is equal to 24% of the hardware cost. . . .a. What is the BV of the device at the end of year two if the SL depreciation method is used?b. Suppose that after depreciating the device for one year with the SL method, the firm decides to switch to the double declining balance depreciation method for the remainder of the deviceslife (the remaining three years). What is the devices BV at the end of two years?a. Using the SL depreciation method the BV of the device at the end of year two is $. (Round to the nearest dollar.)
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