Liam is struggling to determine which deprecation method he should use for his new silk-screening machine. He
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Question:
Liam is struggling to determine which deprecation method he should use for his new silk-screening machine. He expects sales to increase over the next five years. He also expects (hopes) that in two years he will need to buy a second silk-screening machine to keep up with the demand for products of his growing company. Discuss which depreciation method makes more sense for Liam:
- Higher expenses in the first few years, or keeping expenses consistent over time?
- Or would it be better for him to not think in terms of time, but rather in the usage of the machine?
- Please explain your choice.
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