What is the depreciation deduction dk and book value BVk, for 0 ≤ k ≤ 5, using each of the following methods, for an asset that costs $42,000 and has an estimated MV of $7000 at the end of its 5-year useful life? Assume its ADS-MACRS recovery period is 5 years. (a) DDB Method (b) SYD Method (c) Sinking Fund Method with I =10% (d) ADS (MACRS). Tabulate your answers as follows: Provide the formula and sample calculations for each column. What is the depreciation deduction dk and book value BVk, for 0 s ks 5, using each of the following methods, for an asset that costs $42,000 and has anestimated MV of $7000 at the end of its 5-year useful life? Assume its ADS-MACRS recovery period is 5 years. (a) DDB Method (b) SYD Method (c) Sinking FundMethod with I=10% (d) ADS (MACRS). Tabulate your answers as follows: Provide the formula and sample calculations for each column.dkBVKYearDDBSYDSFADSDDBSYDSFADS1.3

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the depreciation deduction d_k and book value BV_k, for 0 ≤ k ≤ 5, using each of the following methods, for an asset that costs $42,000 and has an estimated MV of $7000 at the end of its 5-year useful life? Assume its ADS-MACRS recovery period is 5 years. (a) DDB Method (b) SYD Method (c) Sinking Fund Method with I =10% (d) ADS (MACRS). Tabulate your answers as follows: Provide the formula and sample calculations for each column.

What is the depreciation deduction dk and book value BVk, for 0 s ks 5, using each of the following methods, for an asset that costs $42,000 and has an
estimated MV of $7000 at the end of its 5-year useful life? Assume its ADS-MACRS recovery period is 5 years. (a) DDB Method (b) SYD Method (c) Sinking Fund
Method with I=10% (d) ADS (MACRS). Tabulate your answers as follows: Provide the formula and sample calculations for each column.
dk
BVK
Year
DDB
SYD
SF
ADS
DDB
SYD
SF
ADS
1.
3

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