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You have bought a new conveyor system for $160,000 three years ago and it is planned that it will have 5 more years of economic

You have bought a new conveyor system for $160,000 three years ago and it is planned that it will have 5 more years of economic service life with a market value of $30,000 at the end of its ESL.

  1. Find the depreciation occured up until now by using Double Declining Balance.

  2. Find the book value now by using Double Declining Balance.

  3. how much you must earn each year to recover the initial investment in 6 years where the real interest

    rate is 11% and the inflation rate is 4% per year.

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