Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have bought a new machinery for $350,000 seven years ago and it is planned that it will have 2 more years of economic service

image text in transcribed
You have bought a new machinery for $350,000 seven years ago and it is planned that it will have 2 more years of economic service life with a market value of $35,000 at the end of it's ESL. (Each section weights 25 pts.) a. Find the depreciation occured up until now by using Double Declining Balance. b. Find the book value now by using Double Declining Balance. c. how much is the capital recovery in 5 years where the real interest rate is 9% and the inflation rate is 2% per year. d. How sensitive is the Annual worth to the market interest rate? You have bought a new machinery for $350,000 seven years ago and it is planned that it will have 2 more years of economic service life with a market value of $35,000 at the end of it's ESL. (Each section weights 25 pts.) a. Find the depreciation occured up until now by using Double Declining Balance. b. Find the book value now by using Double Declining Balance. c. how much is the capital recovery in 5 years where the real interest rate is 9% and the inflation rate is 2% per year. d. How sensitive is the Annual worth to the market interest rate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Is A Powerful Management Tool

Authors: Fateh Bouchene

1st Edition

6204366548, 978-6204366548

More Books

Students also viewed these Accounting questions

Question

6. Describe the purpose and audience for a meeting report

Answered: 1 week ago