
(a)
The

Answer to Problem 11P
The depreciation schedule using straight line depreciation is shown below.
Year |
Depreciation |
Explanation of Solution
Given:
Cost of the handling device is
Time period is
Salvage value is
Concept used:
Write the expression to calculate the depreciation value for the handling device
Here, the depreciation value is
Calculation:
Calculate the depreciation for the handling device.
Substitute
Calculate the depreciation for 5 years and enter them in a table below.
Year |
Depreciation |
Conclusion:
The depreciation schedule using straight line depreciation is shown below.
Year |
Depreciation |
(b)
The depreciation schedule using SOYD.

Answer to Problem 11P
The depreciation schedule using SOYD is shown below.
Year |
Depreciation |
Explanation of Solution
Concept used:
SOYD is known as sum of year’s digits depreciation.
Write the expression to calculate the depreciation of the handling device.
Here, the depreciation value is
Calculation:
Calculate the depreciation using SOYD for the handling device.
Substitute,
Calculate the depreciation value for 5 year.
Year |
Depreciation |
Here, calculate the depreciation from Equation (III).
Conclusion:
The depreciation schedule using SOYD is shown below.
Year |
Depreciation |
(c)
The depreciation schedule using double declining balance depreciation.

Answer to Problem 11P
The depreciation schedule using double declining balance depreciation is shown below.
Year |
Depreciation |
Explanation of Solution
Concept used:
Write the expression to calculate the depreciation using double declining balance depreciation
Here, the depreciation is
Calculation:
Calculate the depreciation of the handling device for the first year.
Substitute
Calculate the depreciation of the handling device for 5 years and enter it in a table below.
Year |
Depreciation charge up to year |
Depreciation |
Conclusion:
The depreciation schedule using double declining balance depreciation is shown below.
Year |
Depreciation |
(d)
The depreciation schedule using MACRS depreciation.

Answer to Problem 11P
The depreciation schedule using MACRS is shown below.
Year |
MACRS |
Cost |
Depreciation |
Explanation of Solution
Concept used:
Write the expression to calculate the depreciation value for the motorboat.
Here, the depreciation value is
Calculation:
Using MACRS GDS 4 year property table calculate the depreciation for the handling device.
Calculate the depreciation for handling device.
Substitute
Calculate the depreciation for 5 years and enter them in a table below.
Year |
MACRS |
Cost |
Depreciation |
Conclusion:
The depreciation schedule using MACRS is shown below
Year |
MACRS |
Cost |
Depreciation |
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Chapter 11 Solutions
Engineering Economic Analysis
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