11. An engineer with Accenture Middle East BV in Dubai was asked by her client to help him understand the difference between 150% DB and DDB depreciation. Answer these questions if B = $180,000, n = 12 years, and S = $30,000. a. What are the book values after 12 years for both methods? b. How do the estimated salvage and these book values compare in value after 12 years? c. Which of the two methods, when calculated correctly considering S = $30,000, writes off more of the first cost over 12 years?

11. An engineer with Accenture Middle East BV in Dubai was asked by her client to help him understand the difference between 150% DB and DDB depreciation. Answer these questions if B = $180,000, n = 12 years, and S = $30,000. a. What are the book values after 12 years for both methods? b. How do the estimated salvage and these book values compare in value after 12 years? c. Which of the two methods, when calculated correctly considering S = $30,000, writes off more of the first cost over 12 years?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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