Question
You have purchased a new machine. The purchase value of this machine is B = 110,000, life n = 10 years and a projected salvage
You have purchased a new machine. The purchase value of this machine is B = 110,000, life n = 10 years and a projected salvage value of 10,000. Your accountant will apply 175% Declining Balance for the first 5 years and the classic Straight Line depreciation for the following 5 years. Your company's MARR is 10%. a) Calculate what your annual depreciation amounts are (depreciation schedule) and what the PW of your depreciation is. b) Is the schedule suggested by your accountant "correct" for your company? (You should interpret the concept of "right" in this context)
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