Hi there,

I need help answering the following questions about math of finance

1- A machine costs $87,500 with estimated scrap value of $12,000 after 5 years. The asset is expected to increase revenue by $27,000 a year before maintenance costs of $8,200 a year. Assuming a tax rate of 33%, compute the net present value of the investment using a 5% interest rate and depreciation charges obtained from

a.the straight line method of depreciation.

b.the sum of years digits method of depreciation.

c.the double declining balance method for two years followed by the straight line method.

2- A printer costs $6,200 and is expected to make 80,000 copies. Suppose that in the first three years 11,400, 15,000 and 9,800 copies are made. If the printer has no scrap value, find the depreciation allowance for the first 3 years.

3- An asset costs $36,000, has a useful life of 5 years and an estimated scrap value of $8,200. Assume an interest rate Of 5% compounded annually and find the present value of the depreciation charges using:

a.the straight line method.

b.the sum of the years digits method.

c.the double declining balance method for two years followed by the straight line method.

Please show the answer step by step and the formulas used