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Please show complete solution and cash flow diagram Question 1 Needs Grading Company A is considering the purchase of a new equipment. This equipment cost
Please show complete solution and cash flow diagram
Question 1 Needs Grading Company A is considering the purchase of a new equipment. This equipment cost $250,000 and will be depreciated using an MACRS GDS recovery period of 5 years. The equipment is expected to have a market value of 550.000 at the end of its estimated 8-year life. What is the depreciation amount on the second year? What is the Book Value at the end of the 3rd year? Assume that the asset will be disposed of in year 3. Question 2 Needs Grading Company B recently acquired a small equipment that costs $20,000. The asset has a life of 8 years and a $2.000 salvage value. What is the BV at the end of year 4 if double declining balance depreciation is usedStep by Step Solution
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