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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BA Aerospace purchased new aircraft engine diagnostics equipment for itsmaintenance support facility in France. Installed cost was $500,000 with adepreciable life of 5 years and an estimated 1% salvage. Use a spreadsheet to determine the following:a. Straight line (SL) depreciation and book value schedule.b. Double declining balance (DDB) depreciation and book value schedule.c. Declining balance (DB) at 150% of the SL rate depreciation and book value schedule.d. MACRS depreciation and book value schedule.e. Depreciation and book value schedule allowing a switch from DDB to SLdepreciation.f. One graph that plots the book value curves for all five schedules.
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