Loretta Livermore Labs purchased R&D equipment costing $200,000. The interest rate is 5%, salvage value is $20,000, and expected life is 10 years. Apply each of the following four techniques and answer the questions below: 1. Straight-line depreciation 2. Sum-of-years'-digits depreciation 3. Double declining balance depreciation 4. MACRS depreciation (see Table 11.2 for the property class for R&D equipment and Table 11.3 for the depreciation percentages) a) Determine the depreciation schedule (i.e. depreciation charges (d:) and book values (BV:)) by each technique. b) Compute the Present Worth of the depreciation deductions for each technique. c) Plot the book values of the asset versus time (BV(t) for t=0,1,...,10) for each technique in the same graph. Use Excel Chart type "X-Y scatter with straight lines". Interpret the graph. d) Which technique is best for tax purpose? Why