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Questions 3, 4,5,& 6 pertain to the following: A company is considering buying one of the following two computers Computer B Initial Cost Salvage Value

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Questions 3, 4,5,& 6 pertain to the following: A company is considering buying one of the following two computers Computer B Initial Cost Salvage Value Useful Life Yearly Maintenance Computer A $3900 $1800 10 years $390 $5500 $3100 10 years $275 (year 1 to 5) $425 (year 6 to 10) 6% Interest Rate 6% 3. Based upon AW analysis, which computer should the company purchase? 4. What annual maintenance cost for Computer B will result in Computers A & B being equivalent 5. What is the book value of Computer B in year-3 using sum-of-years depreciation? 6. What is the annual straight liner depreciation for Computer A

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