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Cisco Systems is purchasing a new bar code scanning device foCost Item its service center in San Francisco. The table that on the right lists
Cisco Systems is purchasing a new bar code scanning device foCost Item its service center in San Francisco. The table that on the right lists the relevant cost items for this purchase. The operating expenses for the new system are $10,000 per year, and the useful life of the system is expected to be four years. The SV for depreciation purposes is equal to 22% of the hardware cost. Cost $160,000 Hardware Training Installation $17,000 $16,000 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 device's life (the remaining three years). What is the device's BV at the end of three years
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