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Solar power is to be installed to handle a large portion of a company's electrical load. Even though the system will likely work for 20-25
Solar power is to be installed to handle a large portion of a company's electrical load. Even though the system will likely work for 20-25 years, there is concern about functional obsolescence and the need to replace the system with more efficient components much sooner. The cost will be $300,000 and the system is expected to have a useful life of 8 years with a salvage value of $21,000 at that time. Develop a table showing the depreciation and book value for each year using double declining balance switching to straight-line depreciation at the optimal time. Do NOT use the Excel VDB worksheet function. Year Depreciation Book Value 0 A 1 $ $ N $ $ 3 $ $ 4. $ A GA 5 $ $ 6 ta $ 7 $ 8 $ $ Carry all interim calculations to 5 decimal places and then round your final answers to 2 decimal places. The tolerance is +1.00. How do you determine the optimal time to switch to straight line depreciation? than the The optimum time to switch is the first time the depreciation charge with straight-line depreciation is one that results from using declining balance method
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