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Question 2 Consider the following accounting information for a soya dispenser: asset's cost basis, P = $12,000, useful life, n-5 years, estimated salvage value, F

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Question 2 Consider the following accounting information for a soya dispenser: asset's cost basis, P = $12,000, useful life, n-5 years, estimated salvage value, F = $890. Compute the annual depreciation allowances and the resulting book values using the sum-of-years'-digits depreciation method. Present your results in a table (10 marks) Net profit for yearj is known to be P;=(P-j-2,3...,6. If P.-$1200, determine the equivalent uniform annual profit based on quarterly compounding with a 12% nominal interest rate. (10 marks)

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