Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years and a salvage value of $500 at the end of its useful life. Assume that the interest rate per year is 10%.
Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years and a salvage value of $500 at the end of its useful life. Assume that the interest rate per year is 10%.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years and
a salvage value of $500 at the end of its useful life. Assume that the interest rate per year is 10%.
Calculate the present worth (PW) of the depreciation, using the DDB depreciation.
O $29455
O $30920
O $32115
O $34180
Question 3
Calculate the present worth of the depreciation, using the straight line depreciation.
O $27.430
O $28.570
O$29.950
O$31.880
Question 4
Calculate the present worth of the depreciation, using the SCOYD depreciation.
O $28,640
O $29,890
O $31.840
O $32.780](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6b045df-0c56-41dd-816d-1a14e1b5e0db%2Fd0383217-76a8-453b-9f18-8fb0816ae09f%2F0wxd7hq3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tiffany bought a piece of equivalent for $40,000. The equipment has a useful life of 5 years and
a salvage value of $500 at the end of its useful life. Assume that the interest rate per year is 10%.
Calculate the present worth (PW) of the depreciation, using the DDB depreciation.
O $29455
O $30920
O $32115
O $34180
Question 3
Calculate the present worth of the depreciation, using the straight line depreciation.
O $27.430
O $28.570
O$29.950
O$31.880
Question 4
Calculate the present worth of the depreciation, using the SCOYD depreciation.
O $28,640
O $29,890
O $31.840
O $32.780
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