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Your company is considering an investment that would involve the following initial outlays: cost of equipment: $303,203, installation: $18,303, and change in NOWC: $25,453. The
Your company is considering an investment that would involve the following initial outlays: cost of equipment: $303,203, installation: $18,303, and change in NOWC: $25,453. The equipment is classified to be depreciated according to the MACRS 3-year table, with the following depreciation schedule: year 1 = 33%, year 2 = 45%, year 3 = 15%, year 4 = 7%. What is the depreciation expense in year 2?
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