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Your firm wants to buy a vehicle for $30,000. The depreciation period is 10 years. Now consider these two scenarios: a) Using the DDB
Your firm wants to buy a vehicle for $30,000. The depreciation period is 10 years. Now consider these two scenarios: a) Using the DDB depreciation (with a switch to alternative straight line depreciation). b) Using the sum of the years' digits depreciation. Compute the vehicle's value in Year 8 of DDB depreciation and SOYD depreciation, denoted as VDDB and Vsoyd respectively. What is the ratio of VDDB/VSOYD? Consider the salvage value of the vehicle is $1,000. What is the ratio of VDDB/VSOYD? answer number (rtol=0.01, atol=0.01) ?
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To compute the vehicles value in Year 8 using both the doubledeclining balance DDB depreciation method and the sum of the years digits SOYD depreciati...
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
