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Proctor and Wamble purchased some research and development equipment for $200,000. The interest rate is 5% and salvage value is $20,000. The equipment's expected life
Proctor and Wamble purchased some research and development equipment for $200,000. The interest rate is 5% and salvage value is $20,000. The equipment's expected life is 10 years. Compute the depreciation schedule of each method and calculate the net present value of each approach to determine which one is better: a) Straight-line depreciation b) Sum-of-years'-digits depreciation c) MACRS depreciation Select one: o a. SOYD Depreciation o b. Straight-Line Depreciation O C. MACRS Depreciation O d. DDB Depreciation e. None
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