Required informationBlackwater Spring and Metal utilizes the same computerized spring-forming machinery in its U.S. and Malaysian plants.The first cost was $750,000 with S= $150,000 aftern= 10 years. MACRS (Modified Accelerated Cost RecoverySystem) depreciation with n=5 years is applied in the United States, and standard SL depreciation with n= 10 years isused by the Malaysian facility.Depreciation Rate (%) for Each MACRS Recovery Period in YearsYearn=3n=5n=7n= 10n=15n= 2033.3320.0014.2910.005.003.7544.4532.0024.4918.009.507.2214.8119.2017.4914.408.556.684.7.4111.5212.49I1.527.706.1811.528.939.226.935.716.5.768.927.37.6.235.29178.936.555.904.894.466.555.904.526.565.914.46106.555.904.463.285.914.46125.904.46135.914.46145.904.46155.914.462.954.46164.4617-202.2321Use a spreadsheet to plot the book values for both methods on a single graph. (Please upload your response/solution using the controls below.)

Depreciation as per MACRS is based on fixed depreciation rate for particular recovery period, which…

Required information Blackwater Spring and Metal utilizes the same computerized spring-forming machinery in its U.S. and Malaysian plants. The first cost was $750,000 with S= $150,000 after n= 10 years. MACRS (Modified Accelerated Cost Recovery System) depreciation with n=5 years is applied in the United States, and standard SL depreciation with n= 10 years is used by the Malaysian facility. Depreciation Rate (%) for Each MACRS Recovery Perlod In Years Year n=3 n=5 n=7 n= 10 n= 15 n= 20 33.33 20.00 14.29 10.00 5.00 3.75 2. 44.45 32.00 24.49 18,00 9.50 7.22 3. 14.81 19.20 17.49 14.40 8.55 6.68 4. 7.41 11.52 12.49 11.52 7.70 6.18 I1.52 8.93 9.22 6.93 5.71 5.76 8.92 7.37 .6.23 5.29 7. 8.93 6.55 5.90 4.89 4.46 6.55 5.90 4,52 6. 6.56 5.91 4.46 10 6.55 5.90 4.46 3.28 5.91 4.46 12 5.90 4.46 13 5.91 4.46 14 5.90 4.46 5.91 4.46 15 2.95 4.46 16 4.46 17-20 2.23 21 nreadsheet to plot the book yalues for both methods on a single graph. (Please upload your response/solution using the controls below.)

Required information Blackwater Spring and Metal utilizes the same computerized spring-forming machinery in its U.S. and Malaysian plants. The first cost was $750,000 with S= $150,000 after n= 10 years. MACRS (Modified Accelerated Cost Recovery System) depreciation with n=5 years is applied in the United States, and standard SL depreciation with n= 10 years is used by the Malaysian facility. Depreciation Rate (%) for Each MACRS Recovery Perlod In Years Year n=3 n=5 n=7 n= 10 n= 15 n= 20 33.33 20.00 14.29 10.00 5.00 3.75 2. 44.45 32.00 24.49 18,00 9.50 7.22 3. 14.81 19.20 17.49 14.40 8.55 6.68 4. 7.41 11.52 12.49 11.52 7.70 6.18 I1.52 8.93 9.22 6.93 5.71 5.76 8.92 7.37 .6.23 5.29 7. 8.93 6.55 5.90 4.89 4.46 6.55 5.90 4,52 6. 6.56 5.91 4.46 10 6.55 5.90 4.46 3.28 5.91 4.46 12 5.90 4.46 13 5.91 4.46 14 5.90 4.46 5.91 4.46 15 2.95 4.46 16 4.46 17-20 2.23 21 nreadsheet to plot the book yalues for both methods on a single graph. (Please upload your response/solution using the controls below.)

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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