Reliant Electric Company has erected a large portable building with a first cost of $255,000 and an anticipated salvage of $50,000 after 25 years. (a) Should the switch from DDB to SL depreciation be made? (b) For what values of the uniform depreciation rate in the DB method would it be advantageous to switch from DB to SL depreciation at some point in the life of the building? How does this rate compare with the DDB rate of 2/n?

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