A machine has a life of 25 years, costs $250,000, and has a salvage value of $20,000 using straight-line depreciation. What depreciation rate will result in the same book values for both the declining-balance and straight-line methods at the end of year 15? The depreciation rate that will result in the same book values for both the declining-balance and straight-line methods at the end of year 15 is approximately percent. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

A machine has a life of 25 years, costs $250,000, and has a salvage value of $20,000 using straight-line depreciation. What depreciation rate will result in the same book values for both the declining-balance and straight-line methods at the end of year 15? The depreciation rate that will result in the same book values for both the declining-balance and straight-line methods at the end of year 15 is approximately percent. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

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The cost of a new machine is $40,000 and the new machine takes $2,000 to install. At the end of its useful life, its salvage value is $5,000. Under the modified accelerated cost recovery system (MACRS), what is the depreciable value of the new machine? a $35,000 b $37,000 c $42,000 d $40,000
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A manufacturing company is considering investing in a new machine that costs $50,000. The machine is expected to have a useful life of 5 years. The company estimates that the salvage value of the machine at the end of its useful life will be $10,000. If the company uses straight-line depreciation, what will be the capitalized cost of the machine? A) $7,000 B) $7,500 C) $8,000 D) $8,500
Having an issue with this problem.
A machine was purchased two years ago for 60000 TL. At that time, it was assumed that the machine had a 6 years useful time with a salvage value of 6000 TL. The company used straight line depreciation method. Today the machine has a market value of 50000 TL. The tax rate is 35%. If the company wants to provide a replacement analysis what amount should be used for the initial investment value of this current machine in the analysis? Lütfen birini seçin: a.50000 b.52800 c.47200 d.62250 e.53500

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