An actuarial scientist (the appraiser) with an insurance company in GA believes that the best estimate for the book value of a car totaled in an accident that has gone through ? years of depreciation is to use weighted values from the MARCS and the Straight Line (SL) depreciation methods. His weighted model is given by: ???=[?(????)+(?−1)(?????)] / (?+2) Where: ??? is his calculated Book value after year n. ???? is the Book Value after n years from the MACRS and ????? is the Book Value after n years from the Straight-Line method. Right after its third year in operation, a vehicle that was initially purchased at $55,000 was involved in an accident and was totaled. What will be the appraiser’s book value if he assumes a salvage value of $5,000 after five years
An actuarial scientist (the appraiser) with an insurance company in GA believes that the best estimate for the book value of a car totaled in an accident that has gone through ? years of
???=[?(????)+(?−1)(?????)] / (?+2)
Where: ??? is his calculated Book value after year n. ???? is the Book Value after n years from the MACRS and ????? is the Book Value after n years from the Straight-Line method.
Right after its third year in operation, a vehicle that was initially purchased at $55,000 was involved in an accident and was totaled. What will be the appraiser’s book value if he assumes a salvage value of $5,000 after five years
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