Part b specifically

6) The Acme Chemical Company paid $45,000 for research equipment, which it believes will have zero salvage value at the end of its 5-year depreciable life. Compute the depreciation and book value schedule using: Straight line Sum-of-years' - digits Double declining balance i) ii) iii) Is it possible for you to suggest now which depreciation method Acme should adopt? b. An $80,000 bailing machine for recycled paper was purchased by the NKJ company two years ago. The current market value of the machine is $50,000, and it can be kept in service for seven more years. MARR is 12% per year and the projected net annual receipts (revenue minus expenses) and end-of-year market values for the machine are given below. When is the best time for the company to abandon the project? 2 3. 4 Year $20,000 $20,000 $18000 $15000 $12000 $6000 $3000 Net annual receipts Market 40000 value 25000 10,000 $5000 20000 15000 32000 6) The Acme Chemical Company paid $45,000 for research equipment, which it believes will have zero salvage value at the end of its 5-year depreciable life. Compute the depreciation and book value schedule using: Straight line Sum-of-years' - digits Double declining balance i) ii) iii) Is it possible for you to suggest now which depreciation method Acme should adopt? b. An $80,000 bailing machine for recycled paper was purchased by the NKJ company two years ago. The current market value of the machine is $50,000, and it can be kept in service for seven more years. MARR is 12% per year and the projected net annual receipts (revenue minus expenses) and end-of-year market values for the machine are given below. When is the best time for the company to abandon the project? 2 3. 4 Year $20,000 $20,000 $18000 $15000 $12000 $6000 $3000 Net annual receipts Market 40000 value 25000 10,000 $5000 20000 15000 32000