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please answer question 4.. data provided below 1) PRESENT WORTH = 2300 2) DEPRECIATION= 1800 (1000-500/8) SLD YEAR OPERNING BALANCE DEPRECIATION CLOSING BALANCE 1 10000

image text in transcribedimage text in transcribedplease answer question 4.. data provided below

1)

PRESENT WORTH = 2300

2) DEPRECIATION= 1800 (1000-500/8)

SLD

YEAR

OPERNING BALANCE

DEPRECIATION

CLOSING BALANCE

1

10000

1188

8812

2

8812

1188

7624

3

7624

1188

6436

4

6436

1188

5248

5

5248

1188

4060

6

4060

1188

2872

7

2872

1188

1684

8

1684

1188

496

3)

SOYD

YEAR

OPERNING BALANCE

FRACTION

DEPRECIATION

CLOSING BALANCE

1

10000

8

0.222222

2111.111

7888.889

2

7888.889

7

0.194444

1847.222

6041.667

3

6041.667

6

0.166667

1583.333

4458.333

4

4458.333

5

0.138889

1319.444

3138.889

5

3138.889

4

0.111111

1055.556

2083.333

6

2083.333

3

0.083333

791.6667

1291.667

7

1291.667

2

0.055556

527.7778

763.8889

8

763.88

1

.0277777

263.88

500

36

9500

DEPRECIATION= 10000-500*8/36= 2111

4)

DDB

YEAR

OPERNING BALANCE

DEPRECIATION

CLOSING BALANCE

1

10000

2500

7500

2

7500

1875

5625

3

5625

1406.25

4218.75

4

4218.75

1054.688

3164.063

5

3164.063

791.0156

2373.047

6

2373.047

593.2617

1779.785

7

1779.785

444.9463

1334.839

8

1334.839

333.7097

1001.129

DEPRECIATION= 100/8= 12.5%

UNDER DDB= 12.5*2= 25%

5)

MACRS

YEAR

OPERNING BALANCE

DEPRECIATION

CLOSING BALANCE

1

10000

2500

7500

2

7500

1875

5625

3

5625

1406.25

4218.75

4

4218.75

1054.688

3164.063

5

3164.063

791.0156

2373.047

6

2373.047

593.2617

1779.785

7

1779.785

444.9463

1334.839

8

1334.839

333.7097

1001.129

DEPRECIATION= 2500(1000*1/8*200%)

3. A mining company invests $10,000 in equipment that will result in a $3,000 annual revenue stream for 8 years. Annual expenses are $700, salvage $500 after 8 years and the MARR 9% . The corporation expects to pay 53% of its revenue in income tax. What is a) The before-tax present worth ? b) Calculate the SLD deprecation schedule c) Calculate the SOYD deprecation schedule d) Calculate the DDB deprecation schedule e) Calculate the MACRS deprecation schedule

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