Note: Show all of your work to arrive at a final result, 1) Using sum-of-the-years-digits depreciation, determine the depreciation schedule for an asset that has an initial cost of $140,000, a salvage value of $20,000, and a depreciation life of three years. Simple Interest Simple Interest, Pon. Samples rincipalment horowodore Final A FP.PP P Compound Interest Factor -- thaa day F- (FP Alche Natio: FP(1+0) Factor Notation: F = PF/PLR) (FA Algerie Notation Factor Notation: F = AFAL) (PAK Algebraic Notation: Factor Notation: P = A(P/Ain) (AG): Factor Notation: A = A, GA/GER) A Constant amount G = Gradient amount PG Factor Notation: ACP/A ) (P/GL) PF Alpha PFD- Factor Not PFCFL) (AF: Algebraic Notation A l l Factor Nocation: A = F(A FED) (AP Algebraic Notation: A P Factor Notation: A = P(A/PL) (AG: Algebraic Notation: - ) (PG: Algebraic Notation ) Interest Rate Conversion Effective Interest Rate, Nominal Interest Rate, r=c((1+04 - 1 Effective Annual Interest rate, i (12- 1 Continuous Interest Factors (F/Pk Algebraic Notation: F = Pe Factor Notation: FP[F/Pin] (FA: Algebraic Notation: F=AS Factor Notation: F = AEAL (PA): Algebraic Notation: P A Factor Notation: P AP/AL (PF) Algebraic Notation: PEF Factor Notation: P FP/F in (AF: Algebraic Notation Factor Notatie: A = AFIR (APE Algebraic Notation A p Factor Notation: A = PA/Pin Continuous Interest Rate Conversion Effective Annual Interest rate ime-1 ominal Interest RateIn( 10 Bond contractual rate P L Bonds P A ) VPF Where: P-Purchase price, V-Face , o mmenter of years te maturity rearedominal rate Depreciation Methods or Models In General: DB1-B BPD Patial Co-V -Book ValFOYED, Dupe LSV Straight Line: D. Ducati Sum of years Darts 0,- - B- -1)+L BEP- Sanking Fund D. (P-DAFDE/PL-1) B. =P-DEP-P-DAF L.) CEA 1,t) Declining Balance: D a D. - P(1-4) . B.-(1-P 1 - Switches Double Declining Balance = (-). D. - P(1-4 B P -ED-P(1-a) > where Equivalent Annual Cost of Capital Recovery Plus Retur ECR (P-L)(A/P 1,)+L(