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Your roommate decides to buy an awesome computer for $10,000 at the end of the year. He/she thinks the computer will last for 5 years.
Your roommate decides to buy an awesome computer for $10,000 at the end of the year. He/she thinks the computer will last for 5 years. At the end of the first year, he/she upgrades the RAM (a component inside the computer) for $1,000 but it is only expected to last 3 years. At the end of the second year, he/she adds a new cooling system to the computer for $2,000 and it is expected to last for the remaining life of the computer.
- What is depreciation in year 1?
- What is depreciation in year 3?
- What is depreciation in the final year?
Please show the works in detail on Excel Sheet ( with Formulas ). Thank you so much!!
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