Siemens Company has invested in a Wind turbine: Turbine Cost $80,000 Useful life 10 years Salvage value (S.V.) $2,000 3 Use Modified Straight-Line Method. Consider 60% of the total deprecation :occurs over the first 5 years of the turbine useful life. Find $78,000 $46,800 $9,360 $6,240 $4,680 Depreciation per year in the o O O O first 5 years o O O Depreciation per year in the rest period Total Depreciation (2) Use Modified Straight-Line Method. Consider 60% of the total deprecation occurs over the first 5 years of the turbine useful life. Find $51,920 $46,800 $33,200 $31,200 $20,720 O O O Book Value at Year 5 O O Book Value at Year 7 (2) Now, Use Straight-line (SL) Method: Consider S.V.=O What is Annual ? Revenue if Payback Period is 4 years $20,000 $19,500 $31,200 $40,000 O Now, Use Straight-line (SL) Method: Consider S.V.=0 What is the expected ?simple ROR on the turbine 5.2% O 23.4% O 15% O 12% O