1. Assume that at the beginning of Year 1, Porter Airlines purchased a Bombardier Q400 aircraft at a cost of $25,000,000. Porter expects that plane to remain useful for five years (5,000,000 km) and to have a residual value of $2,000,000. Porter expects the plane to be flown 750,000 km the first year, and 1,250,000 km each year during years 2 through 4, and 500,000 km the last year (Year 5). Complete Porter's depreciation table using: a. straight-line Calculate annual depreciation: (show your calculation here) Depreciation Expense Net Accumulated Net Book Value Depreciation Book Value Year 1 25,000,000 Year 2 Year 3 Year 4 Year 5 2,000,000 b. double-declining-balance Useful life; ?? Rate: ?? Double the rate to ?? Accumulated Net Book Depreciation Expense Net Book %3D Value Rate Depreciation Value Year 1 Year 2 Year 3 Year 4 Year 5 Plug in

1. Assume that at the beginning of Year 1, Porter Airlines purchased a Bombardier Q400 aircraft at a cost of $25,000,000. Porter expects that plane to remain useful for five years (5,000,000 km) and to have a residual value of $2,000,000. Porter expects the plane to be flown 750,000 km the first year, and 1,250,000 km each year during years 2 through 4, and 500,000 km the last year (Year 5). Complete Porter's depreciation table using: a. straight-line Calculate annual depreciation: (show your calculation here) Depreciation Expense Net Accumulated Net Book Value Depreciation Book Value Year 1 25,000,000 Year 2 Year 3 Year 4 Year 5 2,000,000 b. double-declining-balance Useful life; ?? Rate: ?? Double the rate to ?? Accumulated Net Book Depreciation Expense Net Book %3D Value Rate Depreciation Value Year 1 Year 2 Year 3 Year 4 Year 5 Plug in

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 14P

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