Question
GolfCo manufactures golf clubs and other equipment related to golf. It has purchased a new labelling machine for $20,000 that it will depreciate for 6
GolfCo manufactures golf clubs and other equipment related to golf. It has purchased a new labelling machine for $20,000 that it will depreciate for 6 years using linear depreciation. It will use a constant depreciation per year of $2250.
(a) Use Excel to draw the Book Value VS Time graph for the labelling machine. Please label all axes and put a title above the graph.
(b) What is the book value after 4 years?
c) If another company named PutterCo offers GolfCo to purchase the labelling machine for $6500 after 5 years of use, should GolfCo accept the offer? Why or why not?
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