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The required equipment would cost $380,000, plus an additional $35,000 for shipping and installation. In addition, inventories would rise by $35,000, while accounts payable would
The required equipment would cost $380,000, plus an additional $35,000 for shipping and installation. In addition, inventories would rise by $35,000, while accounts payable would increase by $8,000. All of these costs would be incurred at t = 0. By a special ruling, the machinery could be depreciated under the MACRS system as 4-year property. The applicable depreciation rates are 35%, 30%, 25%, and 10%. How would I figure out a formula to figure out the depreciation? The operating cost without depreciation is 186,300. Thank you!
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