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XYZ Company uses the straight-line depreciation method, and reports the information below for its plant assets below: Cost: $850,000. Annual depreciation expense: $50,000. Accumulated depreciation
XYZ Company uses the straight-line depreciation method, and reports the information below for its plant assets below:
Cost: $850,000.
Annual depreciation expense: $50,000.
Accumulated depreciation expense: $200,000.
Required:
a. Compute the analytical measures of plant age for XYZ Company
b. What information is useful to determine an estimated point of plant asset replacement in a forecast of future cash flows?
c. Will the analytical measures of plant age impact (be included) an analyst's forecast in this case?
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