A new CNC machine is purchased for $40,000. The salvage value of the CNC machine is expected to be 15% of the initial cost. The CNC machine qualifies for 3-year GDS MACRS depreciation. What is the book value of the CNC machine after two years of depreciation?

Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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engineering economy question. the correct answer
is about $8,888
A new CNC machine is purchased for $40,000.
The salvage value of the CNC machine is
expected to be 15% of the initial cost. The CNC
machine qualifies for 3-year GDS MACRS
depreciation. What is the book value of the CNC
machine after two years of depreciation?
Transcribed Image Text:engineering economy question. the correct answer is about $8,888 A new CNC machine is purchased for $40,000. The salvage value of the CNC machine is expected to be 15% of the initial cost. The CNC machine qualifies for 3-year GDS MACRS depreciation. What is the book value of the CNC machine after two years of depreciation?
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